President Trump announced Monday that the United States will slap a 50% tariff on all Canadian automotive and steel imports beginning Jan. 1, 2027, escalating a trade fight after negotiations between Washington and Ottawa collapsed.
“Canada has been ripping off the United States of America for years,” Mr. Trump wrote in a post on Truth Social.
“On Jan. 1, 2027, Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50%,” he said. The president added that vehicles manufactured in the United States would not be covered by the new import duties.
“Canada will be treated like a State no longer!” he added.
Automobiles and auto parts made outside the U.S. are already subject to a 25% tariff, while Canadian steel imports currently face a 50% levy.
The latest announcement comes days after 50% U.S. tariffs took effect Saturday on hundreds of Canadian products, including imported hockey sticks and agricultural goods. Canada has said it will answer with tariffs of its own on U.S. products, scheduled to begin Sept. 8, according to Canadian Prime Minister Mark Carney.
In a July proclamation, Mr. Trump alleged that Canada was discriminating against American commerce by unfairly taxing U.S.-made motor vehicles and giving more favorable treatment to other foreign countries than to the United States “with respect to motor vehicles.”
Canada currently applies a 25% tariff to U.S. motor vehicles that do not qualify for duty-free treatment under the United States-Mexico-Canada Agreement, a policy Mr. Trump called “unreasonable” in the July proclamation.
The escalating trade war could make some items more expensive for Americans. Because U.S. businesses pay the American tariffs, they are likely to pass on costs to consumers through higher prices, experts say. The new tariffs could impact about 5% of Canada’s exports to the U.S.
Mr. Trump relied on Section 338 of the Tariff Act of 1930 to impose the 50% tariffs on hundreds of imported Canadian goods.
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Carney said Canada’s planned retaliatory tariff will apply to U.S. steel, dairy, appliances, agricultural equipment, pulp and paper and electronics.
Aimee Picchi
contributed to this report.
