Trump threatens 50% tariffs on Canadian automobiles, steel in latest trade dispute

President Donald Trump is threatening to sharply increase tariffs on Canadian goods, escalating a trade dispute between the United States and Canada after negotiations between the two countries collapsed.

In a social media post Monday, Trump said tariffs on all Canadian cars, trucks, automotive parts and steel would increase to 50% beginning Jan. 1, 2027.

“Build in the U.S. and there are ZERO TARIFFS,” Trump wrote.

Trump says Canada has imposed high tariffs on U.S. farmers and agricultural products, blaming the country for what he described as a $60 billion trade deficit with the United States.

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“Canada has been ripping off the United States of America for years,” Trump wrote, adding later, “WE DON’T NEED CANADA, THEY NEED US!”

Trump’s threat comes days after trade talks between the U.S. and Canada collapsed. The U.S. subsequently imposed 50% tariffs on about $20 billion worth of Canadian goods, while Canada planned to begin retaliatory tariffs on Sept. 8.

United States Trade Representative Jamieson Greer didn’t appear phased by the threat from Canada.

“The vast majority of goods that our small businesses trade in are made in the USA or they’re duty-free,” he told reporters on Monday. “So this is something where we don’t actually expect a huge impact.”