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

President Trump threatened Monday to impose a 50% tariff on Canadian cars, trucks, auto parts and steel, escalating the trade war. The tariffs would take effect in January 2027, aimed at closing a $60 billion budget deficit. Trump stated Canada "will be treated like a state no longer" and claimed the U.S. doesn't need Canada, citing that Canada does 95% of its business with the U.S. The move follows Saturday's 50% tariffs on $20 billion of Canadian goods after talks collapsed Friday. Canada retaliated with dollar-for-dollar tariffs starting Sept. 8, targeting steel, dairy, appliances and electronics. Prime Minister Mark Carney called U.S. proposals "uneconomic, unfair" and refused exclusive access to critical minerals.