Trump threatens 50% tariffs on Canadian autos, steel in January

President Donald Trump threatened Monday to raise tariffs on Canadian vehicles, auto parts and steel to 50 per cent effective Jan. 1, escalating the trade dispute. The threat follows Saturday's imposition of 50 per cent tariffs on other Canadian goods after trade talks collapsed, with Canada accusing the U.S. of bad-faith negotiating. Trump claimed Canada has "ripped off" the U.S., though data shows Canadian exports to the U.S. fell to 68 per cent of total exports in early 2026. Prime Minister Mark Carney pledged dollar-for-dollar retaliation by Sept. 8. Industry officials warn U.S. auto assembly would halt without Canadian parts, noting tariffs are paid by the importer.