Trump raises Canada auto tariffs to 50% in January after trade talks collapse

President Donald Trump announced Monday that tariffs on Canadian cars, trucks, auto parts, and steel will rise to 50% starting Jan. 1, 2027, following the collapse of bilateral trade talks last week. Trump made the announcement in a Truth Social post, accusing Canada of "ripping off" the U.S. for years. Canadian Prime Minister Mark Carney suspended negotiations Friday, saying last-minute U.S. demands were "unfair" and that Canada would match tariffs "dollar for dollar." U.S. Trade Representative Jamieson Greer countered that Canada introduced "new demands and walk backs" after an outline deal was reached. The dispute stems from broader tensions, including 50% tariffs on $20 billion in Canadian imports under a rarely used 1930 law, effective Aug. 19. The USMCA was not renewed at its July deadline, and Canada and China are the only U.S. partners responding with counter-measures.