Trump threatens 50% tariffs on Canadian vehicles from 2027

US President Donald Trump threatened to raise tariffs on all cars, trucks, and automotive parts imported from Canada to 50 percent starting January 1, 2027, escalating a bitter trade dispute. The threat follows the collapse of trade negotiations last week. A proposed deal would have cut US tariffs on Canadian cars and light-duty trucks from 25 to 15 percent, and on aluminum and steel from 50 to 25 percent. Talks broke down Friday over disagreements, including whether tariff relief would extend to medium- and heavy-duty trucks. The threatened increase could disrupt integrated automotive supply chains, raising costs for US automakers and consumers. Canada plans retaliatory tariffs on US goods from September 8, and a poll shows three in four Canadians support ending negotiations.