Trump doubles tariffs on Canadian vehicles, dashing automaker hopes

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 new tariff matches levels on some Chinese gasoline cars and follows failed U.S.-Canada talks that would have cut rates to 15%. Canadian-built vehicles made up about 6% of U.S. sales in 2025, but Ford, GM, Stellantis, Toyota and Honda face significant added costs. Detroit executives argue the 25% tariff on Canada and Mexico, versus 15% for Asian and European rivals, creates an uneven playing field. Some industry sources remain hopeful a deal can be reached before January, noting the deadline leaves room for negotiation.