Trump escalates trade war with Canada over new tariff threats

The trade dispute between the US and Canada escalated Monday as President Donald Trump threatened new 50% tariffs on Canadian cars, auto parts, and steel effective January 1, 2027. The threat follows Friday's collapse of negotiations led by Canadian Prime Minister Mark Carney. Carney stated Canada would not accept a deal "at any price," accusing Washington of seeking to destroy Canadian industries. Trump countered that Canada has "ripped off" the US for years. The dispute began over proposed US tariffs on $20 billion of Canadian goods, prompting Canadian retaliation. Canada exports approximately 70% of its goods to the US, making it highly dependent on its neighbor. However, prolonged tariffs risk fueling US inflation, which has increased public dissatisfaction with Trump. A poll shows 76% of Canadians support breaking off negotiations.