Trump threatens 50% tariffs on Canadian autos, parts, and steel

U.S. President Donald Trump threatened to raise tariffs on Canadian automobiles, parts, and steel to 50 percent effective January 1, 2027, escalating the trade war between the two nations. Trump announced the move on Truth Social Monday, citing a $60 billion deficit and accusing Canada of unfair trade practices. He stated that vehicles built in the U.S. would face zero tariffs, adding that "Canada will be treated like a State no longer!" Prime Minister Mark Carney responded on Aug. 22, pledging a "dollar-for-dollar" retaliatory response effective Sept. 8, targeting sectors including steel, dairy, appliances, and agricultural equipment. The announcement follows U.S. tariffs imposed over the weekend.