Trump threatens 50% tariffs on Canadian cars, trucks, and steel

President Donald Trump threatened 50% tariffs on Canadian cars, trucks, and steel on Monday, escalating a trade dispute with Prime Minister Mark Carney. The new tariffs are proposed to begin January 1, 2027. The threat follows new U.S. tariffs on Canadian goods that took effect Saturday after negotiations broke down. Carney has pledged to match Washington's tariffs dollar-for-dollar, while Ontario Premier Doug Ford warned of retaliation including cutting electricity flows and restricting critical mineral exports. Canada is the third-largest source of U.S. imports, with over $380 billion in goods crossing the border in 2025. The dispute threatens the USMCA trade deal, which Trump negotiated to replace NAFTA.