U.S. doubles tariffs on Canadian vehicles to 50%

U.S. President Donald Trump announced a 50% tariff on vehicles, auto parts, and trucks from Canada, effective January 1, doubling the previous 25% levy and escalating trade tensions. The new tariff, which rivals duties on Chinese vehicles, will significantly raise costs for major automakers like Ford, General Motors, Toyota, and Honda, disrupting supply chains and creating an uneven playing field versus Asian and European rivals facing 15% tariffs. Canadian-built vehicles account for about 6% of U.S. sales, but key models like GM's Silverado and Stellantis's Chrysler Pacifica are at risk. Industry sources remain hopeful a deal can be reached before the deadline.