Trump threatens 50% auto tariffs as Canada vows retaliation

the-star.co.ke

President Donald Trump threatened to raise US tariffs on Canadian automobiles from 25% to 50% starting January 1, escalating the trade war. The move follows the collapse of US-Canada trade talks last week. Canada will outline its response at a Tuesday news conference, with Prime Minister Mark Carney accusing Trump of wanting to "destroy" Canada's auto industry. Carney pledged reciprocal tariffs "dollar for dollar" and announced C$11bn for new icebreakers. Ontario Premier Doug Ford suggested charging the US extra for oil and gas, drawing a sharp rebuke from Trump. Experts warn the escalating dispute risks unravelling the USMCA trade pact, potentially plunging Canada into recession.


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