Higher levy starting in January comes after steep tariffs were imposed on $28-billion worth of Canadian goods Saturday
United States President Donald Trump on Monday announced that he plans to raise tariffs on Canadian autos and auto parts to 50 per cent starting in January, marking the latest escalation of trade tensions between the two countries.
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“On January First, 2027, Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50%, Trump wrote on the social media site Truth Social. “Build in the U.S. and there are ZERO TARIFFS. Canada will be treated like a State no longer!”
The announcement comes after U.S. tariffs targeting $28-billion worth of Canadian goods went into effect on Saturday following the breakdown of talks between Washington and Ottawa on Friday night.
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Prime Minister Mark Carney, who likened the U.S. trade demands to an attack, said Canada would retaliate with dollar-for-dollar tariffs of its own on Sept. 8.
Tariffs on autos were a central part of the tensions that ultimately derailed the trade discussions on Friday.
For decades, the two countries’ auto sectors have been integrated with many of the same companies building autos and shipping parts back and forth over the border.
Currently, the Canadian auto sector faces a 25 per cent tariff on vehicles exported to the U.S., but that amount can be lowered based on the percentage of U.S. parts contained within a vehicle.
