US President Donald Trump has announced plans to double tariffs on Canadian cars and trucks to 50 percent from January 1, 2027, while also imposing a 50 percent tariff on Canadian auto parts.
Trump made the announcement on Monday, blaming Canada for the collapse of recent trade negotiations between the two countries.
The new tariffs would come on top of the 50 percent duties already imposed on some Canadian products following the breakdown of trade talks last week.
Trump said Canadian companies could avoid the tariffs by producing their goods in the United States. He also warned that Canada would no longer be treated as a special trading partner.
Canada is one of the United States’ biggest trading partners. Trade in goods and services between the two countries totalled $872.3 billion last year.
The proposed tariffs could have a major impact on the US automobile industry because vehicle production in the United States is closely linked to supply chains in Canada and Mexico.
Flavio Volpe, president of Canada’s Automotive Parts Manufacturers’ Association, warned that tariffs on Canadian auto parts would ultimately affect US car factories. He said the lack of those parts could bring automobile assembly plants across the US to a halt.
The White House and Canadian government did not immediately provide further details about the proposed tariffs.
Major automakers also did not immediately comment. However, some auto industry executives questioned whether Trump’s threat would eventually be implemented, noting that he had previously announced major tariffs that did not take effect.
They also suggested that the threat could be intended to pressure Canada back into trade negotiations, particularly ahead of the November US midterm elections.
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