U.S. President Donald Trump announced Monday he will impose a 50% tariff on all Canadian automobiles, trucks, car parts and steel imports effective Jan. 1, 2027, escalating a trade dispute that flared after weekend negotiations between the two countries collapsed without agreement.
Trump wrote on Truth Social that Canada has been "ripping off" the United States for years and cited a $60 billion trade deficit he called unsustainable, adding that vehicles built in the U.S. would face no tariffs. The move comes after broad 50% U.S. tariffs already took effect Saturday on $20 billion worth of Canadian goods, including wine, dairy and hockey equipment, covering roughly 5% of Canada's annual exports to the U.S.
Canadian Prime Minister Mark Carney said retaliatory tariffs targeting U.S. steel, dairy, appliances and electronics will take effect Sept. 8, accusing Washington of using economic integration as a weapon.