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 percent, effective January 1, dashing automaker hopes for relief from summer trade talks. The new levy, announced Monday, matches tariffs on some Chinese gasoline cars and would significantly raise costs for Ford, GM, Stellantis, Toyota and Honda. Canadian-built vehicles made up about 6 percent of U.S. sales in 2025, but parts tariffs would hit the broader supply chain. Industry executives expressed surprise at targeting Canada, whose supply chain is deeply integrated with the U.S., and remain hopeful a deal is reached before January. The collapsed agreement would have cut tariffs from 25 percent to 15 percent.