US President Donald Trump has announced a sharp increase in tariffs on Canadian cars, trucks, automotive parts and steel, escalating trade tensions between the two countries.
In a post on Truth Social, Trump said tariffs on the products would be raised to 50% from January 1, 2027. He said goods manufactured in the US would face no tariffs.
“Canada has been ripping off the United States of America for years,” Trump said, accusing Ottawa of imposing high tariffs on US farmers and agricultural products.
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Trump said Canada's trade policies had contributed to a $60 billion deficit between the two countries, which he described as “not sustainable”.
“On January First, 2027, Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50%,” Trump said.
He added that companies manufacturing these products in the US would face no tariffs, saying: “Build in the U.S. and there are ZERO TARIFFS.”
The announcement marks another escalation in Trump's trade policy towards Canada and comes with the US president accusing its northern neighbour of benefiting disproportionately from bilateral trade.
Trump also took aim at Canada's wider economic relationship with the US, arguing that the country relies heavily on the American market.
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