The US president has escalated the trade war with Ottawa days after negotiations collapsed and a new round of duties took effect
US President Donald Trump has announced a 50% tariff on Canadian cars, trucks and auto parts starting next year, escalating a bitter trade war with Ottawa after negotiations collapsed last week.
In a post on Truth Social on Monday, Trump accused Canada of “ripping off the United States of America for years” and imposing excessive tariffs on American farmers. He claimed that bilateral trade has left the US with a “$60 billion deficit.”
“Not sustainable, and NOT ANYMORE! On January First, 2027, Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50%,” Trump announced. The move will double the current 25% tariff on Canadian auto imports.
“Build in the U.S. and there are ZERO TARIFFS,” Trump added, saying Canada would no longer be treated “like a State” and calling it “among the worst nations in the world to deal with.”
“WE DON’T NEED CANADA, THEY NEED US!” he wrote.
The announcement comes just two days after a separate package of 50% US tariffs took effect on around $20 billion worth of Canadian imports, including wine, cement, plywood, clothing and hockey equipment.
Last week, the two sides spent three days trying to wrap up months of heated trade negotiations and avoid mutual tariffs spiraling into an all-out trade war. However, the talks broke down on Friday as both sides accused the other of making last-minute changes to a proposed agreement.
Canadian Prime Minister Mark Carney called the US terms “unfair” and “uneconomic” and pledged to match Washington’s tariffs “dollar for dollar” to protect Canadian workers and businesses.
Ottawa’s retaliatory measures, which are set to take effect on September 8, will target US goods including steel, dairy products, appliances, and electronics.
Trade tensions between Washington and Ottawa, which date back to Trump’s first term, reignited after he returned to office last year and launched a sweeping tariff campaign against major US trade partners. These include Canada, Mexico, China, the EU, and Japan, who Trump has accused of unfairly benefiting from access to the US market.
