Trump threatens 50% tariffs on Canadian cars, trucks and steel from January 2027

US President Donald Trump announced on Monday that the United States will raise tariffs on Canadian cars, trucks, auto parts and steel to 50% from January 1, 2027, deepening trade rift against Ottawa.

Trump said products manufactured in the US would face zero tariffs, while accusing Canada of imposing excessively high tariffs and benefiting disproportionately from trade with its southern neighbour.

"Canada has been ripping off the United States of America for years. 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!" he said in a post on Truth Social.


Also read: Canada rejected US tariff deal. Now comes the economic cost

"On January First, 2027, Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50%. Build in the U.S. and there are ZERO TARIFFS," he said, adding "Canada will be treated like a State no longer! 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!"

We got attacked: Canada 'at war' with US

Canadian Prime Minister Mark Carney declared that Canada is effectively “at war” with the United States over trade, as President Trump’s new 50% tariffs on Canadian goods push relations between the two longtime allies to a new low. Vowing retaliation, Carney said on Saturday that Canada has the “reserves,” “resilience” and “plan” to fight back against what he called an attempt to pressure Ottawa into a bad deal.

“We were attacked. You’re at war when you get attacked. We got attacked.”

Speaking to reporters, the Canadian president described the latest US tariff action as an attack on Canada and rejected pressure from Washington to accept what he characterized as a bad trade deal.

Also read: ‘We got attacked’: Mark Carney claims Canada is ‘at war’ with US as Trump’s 50% tariffs trigger trade showdown

Ottawa has promised a direct response to the new US tariffs.

Canada's retaliatory tariffs are scheduled to take effect on Sept. 8, with Carney saying the country will match the US measures “dollar for dollar.”

US Trade Representative Jamieson Greer also warned that Washington would respond if Canada retaliates.

“For decades, Canada has enjoyed the most favorable access to the U.S. market of any country. And from the beginning of President Trump’s trade program, Canada has continued to enjoy the best treatment in the world,” Greer said in a Friday statement.