Trump's 50% tariffs on Canadian vehicles and steel hit Detroit automakers

President Trump announced a 50% tariff on all Canadian vehicles, parts, and steel effective January 1, 2027, citing a $60 billion trade deficit. Ford and Stellantis fell 4% Monday, while General Motors dropped 2%. The tariffs follow the breakdown of US-Canada trade talks last Friday. Washington has already imposed 50% tariffs on $20 billion of Canadian goods, with Canada planning retaliatory tariffs on September 8. Ambassador Mark Wiseman cited disagreements over medium and heavy trucks. Investors are repricing expected future costs, with Ford still up 17% year-to-date before Monday's decline. The delayed effective date means near-term impact is limited, but prolonged negotiations could pressure the sector further.