Trump raises Canadian auto tariffs to 50% in January

President Donald Trump announced Monday that tariffs on Canadian autos, auto parts, and steel will rise to 50 percent starting January 1, 2027, escalating trade tensions between the two countries. Prime Minister Mark Carney, who likened the U.S. demands to an attack, said Canada would retaliate with dollar-for-dollar tariffs on September 8. The auto sector currently faces a 25 percent tariff, reducible based on U.S. parts content, with talks of lowering it to 15 percent failing over truck exclusions. The exclusion would have hurt Ford, General Motors, and bus makers with Canadian truck plants. Some industry leaders downplayed the threat, noting the four-month delay softens its impact.