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Trump says U.S. will hike Canada auto tariffs to 50% as trade dispute widens

Mark Carney vowed dollar-for-dollar retaliation as economists warned the new duties could threaten about 87,000 Canadian jobs.

  • US President Donald Trump announced that tariffs on Canadian cars, trucks, automotive parts, and steel will increase to 50% starting January 2027, citing high Canadian tariffs on US farmers and a significant trade deficit.
  • Canadian Prime Minister Mark Carney pledged retaliatory tariffs on US goods starting September 8, 2026, to protect Canadian workers and businesses, criticizing the US trade deal terms as unfair.
  • US Trade Representative Jamieson Greer accused Canada of withdrawing commitments and making new demands, describing the suspension of trade talks as a missed opportunity despite US offers of sector-specific relief.
  • Premier Doug Ford of Ontario responded defiantly to the tariffs, threatening to restrict energy and material exports to the US and emphasizing Canada's support to US markets.
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US President Donald Trump threatened on Monday to raise US tariffs on all cars, trucks, and auto parts from Canada to 50 percent starting January 1, escalating the trade dispute after negotiations collapsed over the weekend. Trump wrote on his social media platform, Truth Social, "On January 1, 2027, tariffs on all cars, trucks (both large and small), auto parts, and steel will be raised to 50%." Current US tariffs on cars are 25 percent, while …

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Reuters broke the news in London, United Kingdom on Monday, August 24, 2026.
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