Washington: US President Donald Trump has threatened to raise tariffs on cars, trucks, automotive parts and steel imported from Canada to 50% from January 1, 2027, following the failure of recent trade talks between the two countries.
There was no immediate official response from the White House or the Canadian government to the latest threat.
Trade negotiations between the US and Canada broke down late Friday after Canada prepared to impose retaliatory tariffs on certain American products in response to the 50% US tariff. Both sides have since blamed each other for the collapse of the talks.
Trump says production in US can avoid tariffs
In a social media post, Trump said companies could avoid the tariffs by manufacturing their products in the United States. He also argued that Canada had become too dependent on the US for trade and claimed Washington had less need for Canada than Canada had for the US.
Trump’s latest announcement has raised concerns among the automotive industry, given the deeply integrated supply chains between the two countries.
Auto industry cautious over threat
Major automobile manufacturers did not immediately comment on Trump’s announcement. However, industry executives have expressed doubts about whether the proposed tariffs will ultimately come into force.
They noted that Trump has previously announced major tariffs that were later delayed or did not take effect. Industry officials also warned that a 50% tariff could prompt Canada to impose significant retaliatory measures, potentially escalating the trade dispute.
With several months remaining before January and the US midterm elections in November, some industry observers believe the latest tariff threat could also be intended as a negotiating tactic to bring Canada back to the table.
