Trump threatens 50% tariff hike on Canadian cars, trucks, and steel

President Donald Trump threatened Monday to raise tariffs on all Canadian cars, trucks, parts, and steel to 50 percent starting January 1st, escalating a full-blown trade war with the US's closest traditional ally. Trump made the announcement on Truth Social, calling Canada "among the worst Nations in the World to deal with" and stating "WE DON'T NEED CANADA, THEY NEED US!" He later insulted Canadian officials, saying the US is key to Canada's survival. The threat follows Saturday's imposition of 50 percent tariffs on $20 billion of Canadian exports after trade talks collapsed Friday. Canadian Prime Minister Mark Carney called the nations "at war" over trade and promised dollar-for-dollar retaliation targeting US agriculture, electronics, and steel, with measures announced Tuesday. The tariffs have already devastated Canada's auto industry, with GM and Stellantis cutting production, while US officials and some Republicans expressed alarm over rising domestic costs.