U.S. President Donald Trump announced a 50% tariff on all Canadian automobiles, trucks, auto parts, and steel starting January 1, 2027, escalating a trade dispute after bilateral negotiations collapsed over the weekend. The new duties target roughly $20 billion in Canadian goods, representing about 5% of Canada's exports to the United States.
Trump cited a $60 billion trade deficit with Canada, claiming the country had taken advantage of the U.S. for years. Canada's ambassador Mark Wiseman said the written trade text diverged from what Ottawa believed had been agreed, causing talks to break down.
Canadian Prime Minister Mark Carney announced retaliatory tariffs effective September 8, targeting U.S. steel, dairy, appliances, agricultural equipment, pulp, paper, and electronics. Shares of Ford and Stellantis each fell 4% on the announcement, with General Motors also declining. The United States accounts for roughly 70% of Canadian exports.