Automakers' Hopes Dashed as US Doubles Tariffs on Canadian Vehicles

U.S. President Donald Trump doubled tariffs on Canadian vehicles, auto parts and trucks to 50%, effective January 1, dashing automaker hopes for relief from the previous 25% levy. The higher tariff matches levels on some Chinese gasoline cars and would hit major automakers like Ford, GM, Stellantis, Toyota and Honda, raising costs on key models and parts across the U.S. supply chain. Canadian-built vehicles made up about 6% of U.S. sales in 2025. Industry sources remain hopeful a deal emerges before January, noting the deadline leaves room for negotiation. Detroit executives argue the 25% tariff on Canada and Mexico exceeds the 15% levied on Asian and European rivals, with no U.S. content requirements for those imports.