Trump doubles Canadian auto tariffs to 50% as trade talks collapse

The United States is escalating its trade war with Canada, as President Donald Trump announced plans to double tariffs on Canadian automobiles and auto parts to 50 percent starting Jan. 1. This follows the breakdown of trade talks Friday, which triggered 50 percent U.S. tariffs on various Canadian goods over the weekend. U.S. Trade Representative Jamieson Greer downplayed the tariffs' impact, telling CNBC that Canadians sought more than the Trump administration was willing to offer. The negotiation collapse drew mixed reactions from American politicians, with Democrats condemning the move. Virginia Gov. Abigail Spanberger, a Democrat, warned that Trump's tariffs and Canada's retaliatory duties, set for next month, will raise costs for businesses of all sizes across every industry. The Canadian Press reported this Aug. 25, 2026.