Trump Threatens 50% Auto And Steel Tariffs On Canada Starting In 2027 As Trade Rift Widens
Trump Threatens 50% Auto And Steel Tariffs On Canada Starting In 2027 As Trade Rift Widens
Leslie Bolden Mon, August 24, 2026 at 3:03 PM UTC
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President Donald J. Trump
President Donald Trump escalated an ongoing cross-border trade dispute on Monday, threatening to impose 50% tariffs on all Canadian-made vehicles, auto parts, and steel starting January 1, 2027.
The announcement, posted to Truth Social, intensifies a conflict that began over the weekend when Washington placed 50% duties on $20 billion in Canadian goods and Ottawa vowed to retaliate in kind.
Trump pointed to agricultural trade barriers and a bilateral trade imbalance as the primary drivers behind the proposed measures.
“Canada has been ripping off the United States of America for years,” Trump wrote. “Their ridiculously high tariffs on our Farmers and farm products has made life impossible for these great American Patriots, and has long created a 60 Billion Dollar Deficit between our two Countries. Not sustainable, and NOT ANYMORE!”
Trump urged companies to shift manufacturing south of the border to avoid the upcoming duties, writing, “Build in the U.S. and there are ZERO TARIFFS. Canada will be treated like a State no longer!”
President Donald J. Trump
He also downplayed U.S. economic reliance on its northern neighbor, adding, “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! They do 95% of their business with the U.S., with us, the exact opposite!”
The dispute escalated after eleventh-hour negotiations collapsed late Friday. In response to the initial U.S. tariffs on items ranging from hockey sticks to medical tongue depressors, Canadian Prime Minister Mark Carney said Ottawa would counter dollar-for-dollar.
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Carney accused Washington of making “unfair, uneconomic” demands that scuttled an agreement, subsequently recalling his negotiating team back to Ottawa.
U.S. Trade Representative Jamieson Greer countered that Canada had walked back previous commitments regarding key sectors, including steel, aluminum, autos, and lumber.
The compounding tariff threats place mounting pressure on the regional supply chains governed by the trilateral North American trade pact between the U.S., Canada, and Mexico.
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Trump Threatens 50% Auto And Steel Tariffs On Canada Starting In 2027 As Trade Rift Widens
Source: “AOL Money”
