Trump raises Canada tariffs to 50% on cars and steel from next year

U.S. President Donald Trump announced on August 24 that tariffs on Canadian-made cars, trucks, and auto parts will rise to 50 percent, effective January 1, following the breakdown of trade talks last week. The Canadian dollar continues to weaken. Trump stated Canada will not be treated as a U.S. state, calling it the hardest country to deal with, and said the U.S. does not need Canada. He also claimed Canada runs a $600 billion trade surplus against the U.S., a figure disputed by official data. The announcement follows China's August 22 move to impose 50 percent tariffs on $200 billion of U.S. goods, affecting industries including agriculture and wine. Trump's latest escalation marks a further deterioration in U.S.-Canada trade relations.