Trump says U.S. will raise tariffs on Canadian autos, introduce new levies on auto parts Jan. 1

U.S. President Donald Trump says he will raise tariffs on Canadian autos to 50 per cent and also start tariffing auto parts on Jan. 1, 2027, after a prospective trade deal between the two countries collapsed on Friday.

Mr. Trump’s latest threatened tariffs would be in addition to 50-per-cent tariffs on US$20-billion worth of Canadian goods that came into effect on Saturday, as well as tariffs on steel, aluminum, autos, forest products and other sectoral levies in place since last year.

“Canada has been ripping off the United States of America for years,” Mr. Trump wrote on Monday on his Truth Social network. “Not sustainable, and NOT ANYMORE!”

Mr. Trump said he would double auto tariffs from 25 per cent to 50 per cent and that these would apply to cars, trucks, and auto parts. Auto parts had not previously been tariffed, expanding the economic blast radius of his continental trade war.

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He also said steel tariffs would be “increased” to 50 per cent. These tariffs are already at 50 per cent, as are tariffs on aluminum. Forestry tariffs range from 10 per cent to 25 per cent, in addition to older tariffs on softwood lumber that date to Mr. Trump’s first term.

“Build in the U.S. and there are ZERO TARIFFS. Canada will be treated like a State no longer! On Trade, and in other ways, also, they are among the worst Nations in the World to deal with. They feel entitled, and yet, WE DON’T NEED CANADA, THEY NEED US!” Mr. Trump wrote.

He also complained about a “60 Billion Dollar Deficit” between the countries and Canadian tariffs “on our Farmers.” The trade deficit is mostly caused by the U.S. choosing to import Canadian oil and gas. He did not specify which farmers he was referring to, but Canada’s dairy supply-management system has long been a trade irritant.

Prime Minister Mark Carney said this weekend that he ordered negotiators to walk away from trade talks on Friday after the U.S. added more punitive demands to the trade deal at the last minute.

He said Canada will retaliate “dollar-for-dollar” against Mr. Trump’s tariffs on US$20-billion of goods. Those Canadian counter-tariffs will start on Sept. 8.

More to come.