US President Donald Trump has announced plans to double tariffs on Canadian vehicles, automotive parts and steel to 50 percent from January 1, 2027, escalating an already tense trade dispute between the two North American neighbors.
Trump announced the proposed tariff increase on Monday in a post on his Truth Social platform.
“On January First, 2027, Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50%,” Trump wrote.
The current US tariff on Canadian automobiles stands at 25 percent for non-US content, while imported steel generally faces a 50 percent duty.
Trump’s latest threat comes after the United States and Canada failed to reach an agreement to prevent new 50 percent US tariffs on selected Canadian goods. The duties took effect on Saturday.
Canadian Prime Minister Mark Carney subsequently announced retaliatory tariffs against the United States after rejecting what he described as a “bad deal.”
Canada’s proposed measures will target US steel and dairy products, as well as agricultural equipment, pulp and paper and electronics. The tariffs are scheduled to take effect on September 8.
The White House has accused Canada of engaging in “discriminatory treatment” against US alcohol, automobile and dairy products as part of its trade measures.
Trump had delayed the implementation of the new US tariffs by three days last week as officials from both countries intensified negotiations.
Canada’s chief negotiator, Dominic LeBlanc, and his team held lengthy meetings with US Trade Representative Jamieson Greer in Washington on Thursday and Friday. However, the talks continued late into Friday without producing an agreement.
The latest US duties affect about 5.5 percent of Canadian goods entering the United States, representing approximately $20 billion worth of products, including hockey sticks and cement.
Trump on Monday accused Canada of taking advantage of the United States for years, arguing that Washington had little need for its northern neighbor.
“Canada has been ripping off the United States of America for years,” Trump said, adding that “we don’t need Canada, they need us.”
Greer told The New York Times on Saturday that the Trump administration had offered to remove a 10 percent tariff on Canadian softwood lumber and reduce the 25 percent tariff on automobiles.
According to Greer, Washington was also prepared to reduce steel tariffs from 50 percent to 25 percent for most Canadian steel.
Carney said late Friday that he had decided to suspend trade negotiations with the United States. Greer said Monday that the two countries had yet to schedule another round of talks.
Beyond the immediate tariff dispute, Washington and Ottawa must also negotiate revisions to the United States-Mexico-Canada Agreement (USMCA), which governs trade between the three countries.
Trump has previously declined to renew the agreement in its current form, adding another layer of uncertainty to economic relations between the United States and Canada.
His repeated suggestions that Canada could become the 51st US state have also drawn criticism and further strained relations between the neighboring countries.
