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.
“Canada will be treated like a State no longer!” Trump said, adding that the two countries' relationship on trade and other matters had been unsatisfactory.
He further claimed that Canada conducts 95% of its business with the US, while arguing that the US is less dependent on Canada.
“WE DON'T NEED CANADA, THEY NEED US!” Trump said.
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Trump also described Canada as one of the “worst Nations in the World to deal with” on trade and accused the country of feeling “entitled”.
The proposed 50% tariffs would cover a wide range of Canadian automotive products, including cars, trucks and auto parts, along with steel. Trump did not provide further details in his post on how the new tariffs would interact with existing duties or trade arrangements.
The announcement is likely to put further pressure on the deeply integrated US-Canada automotive and manufacturing supply chains, with companies on both sides of the border potentially facing higher costs if the proposed duties take effect.
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