Trump threatens 50% tariffs on Canadian cars and parts, escalating trade war

President Donald Trump threatened to impose a 50 percent tariff on Canadian cars, auto parts, and steel starting January 1, 2027, escalating his trade war with Canada. He accused Ottawa of unfair trade practices and claimed a $60 billion deficit. Trump's justification that Canada taxes American agricultural imports unfairly is inaccurate, as the USMCA agreement he negotiated permits such tariffs on quota-exceeding products. Canadian Prime Minister Mark Carney said negotiators asked too much and offered too little, warning Ottawa could retaliate by cutting energy supplies. Carney noted Trump's shifting justifications for tariffs and disputed the deficit claim, saying it includes energy purchases. Canada supplies 99 percent of U.S. natural gas imports, 85 percent of electricity imports, and 60 percent of crude oil imports.