US tariffs on Canadian autos and steel set for 2027 after talks collapse

The United States will impose 50% tariffs on Canadian cars, auto parts, and steel starting January 1, 2027, following failed trade negotiations. The deal collapsed due to mutual last-minute demands and internal disagreements within the U.S. administration. Canadian Prime Minister Mark Carney stated the U.S. unexpectedly introduced new conditions, while American officials blamed Canada's additional requests. Ottawa considers renewed dialogue unlikely before midterm elections and is preparing support measures for affected businesses, anticipating a prolonged conflict. Experts warn the breakdown signals limits to Trump's aggressive trade strategy, potentially encouraging other nations frustrated with Washington's unilateral demands. Canada's government expects the trade war to last until the end of Trump's term.