Trump threatens 50% tariff on Canadian cars from 2027

US President Donald Trump threatened Monday that cars made in Canada will face a 50% tariff starting January 1, 2027, escalating trade tensions with the neighboring country. Trump stated the tariff would apply to all vehicles, trucks, parts, and steel, accusing Canada of "ripping off" the US and urging manufacturers to build domestically. The threat follows new 50% duties announced last week on roughly 28 billion Canadian dollars of goods. Canadian Prime Minister Mark Carney responded on August 22 by calling the trade relationship a "war," saying Canada has been attacked. The new tariffs cover about 5% of Canada's annual exports to the US.