US threatens 50% tariffs on Canadian steel and autos as trade war escalates

The United States threatened to raise tariffs on Canadian steel and automobiles to 50 percent on Monday, escalating a trade war after negotiations collapsed. President Donald Trump announced the new duties, effective January 1, 2027, accusing Canada of exploiting the U.S. for years. Canadian Prime Minister Mark Carney broke off talks Friday, rejecting U.S. demands as excessive and harmful to French language protections. New U.S. tariffs on 20 billion dollars of Canadian goods took effect Saturday, with Canada promising retaliatory duties on September 8. Most Canadian exports enter the U.S. duty-free under the USMCA trade agreement, but steel and aluminum already face 50 percent tariffs. Canada sends about 70 percent of its exports to the U.S., though a poll shows 76 percent of Canadians support the hardline stance.