Trump Announces 50% Tariffs on Canadian Cars and Steel Starting 2027

The trade dispute between Washington and Ottawa has escalated further, with the US president unveiling a fresh round of steep tariffs targeting key Canadian exports.

New Tariffs on Autos and Steel

US President Donald Trump announced that tariffs on Canadian cars, trucks, auto parts and steel would rise to 50%, effective January 1, 2027. He made the announcement in a Truth Social post on Monday, days after Canada introduced its own retaliatory tariffs on American goods in response to earlier US trade measures.

Trump’s Case Against Canada

Trump accused Canada of taking advantage of trade with the United States for years, pointing to what he described as a $60 billion trade deficit between the two countries. He also criticized Canadian tariffs on American farm products, saying they have hurt US farmers, calling the situation “not sustainable” and declaring it would no longer continue.

Trade Tensions Continue to Build

The announcement marks the latest step in an ongoing back-and-forth between the two neighboring economies, following Ottawa’s decision to impose its own duties on US goods after Washington’s most recent trade action. Neither government has indicated plans for immediate negotiations to de-escalate the dispute.