Trump slams Canada with new 50 percent auto tariffs for 2027

United States President Donald Trump has said he will double tariffs on Canadian cars and trucks and will introduce tariffs on auto parts in 2027, in the latest attempt to pressure Ottawa after tariff negotiations collapsed last week.

On Monday, Trump said tariffs on Canadian auto and steel will be doubled to 50 percent from January 1. These are in addition to the 50 percent tariffs imposed on Saturday after trade negotiations between the two countries collapsed.

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As the tariff on steel is already at 50 percent, it’s not clear what Trump meant. He also introduced 50 percent tariffs on auto parts, which thus far had not faced a levy.

“Build in the U.S. and there are ZERO TARIFFS. Canada will be treated like a State no longer!” Trump wrote on his social media platform, Truth Social.

“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!”

Canada has consistently been one of the top two trading partners of the United States. Last year, the country’s goods and services trade with Canada totaled $872.3bn, down 4.6 percent.

Canada exported over three-quarters of its goods to the United States and imported almost half of its goods from the country.

US auto production is heavily integrated with Canada and Mexico and the tariffs could have drastic impacts on American production.

Flavio Volpe, president of Canada’s Automotive Parts Manufacturers’ Association, said, “A threatened US tariff on Canadian auto parts will be paid by [the] US auto assembly. Without those specific parts, auto assembly throughout the US would halt.”

The White House did not immediately respond to a request for comment seeking more details on the threatened tariffs. Representatives for the Canadian government also did not immediately respond to a request for comment.

The two countries failed to reach a trade deal late on Friday, with each side blaming the other. Canada readied tariffs on some US goods in retaliation for 50 percent levies ordered by Trump on other Canadian products.

Major automakers did not immediately comment on Trump’s announcement.

But auto executives, speaking to Reuters on the condition of anonymity, raised scepticism about Trump’s threat, noting the president has previously announced large tariffs that never materialized and that any tariff of that size would likely spark a massive Canadian retaliation.

They also noted that January was months away and after November’s midterm elections, asserting that Trump’s threat could be aimed at restarting talks.

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