Trump threatens 50% tariffs on Canadian vehicles and parts starting 2027

President Donald Trump declared that, starting January 1, the United States will double tariffs on Canadian cars, trucks and steel to 50% and impose a fresh 50% duty on auto parts that have not been taxed before. The announcement, shared on his Truth Social platform, frames Canada as a partner no longer needed by the U.S. The tariff escalation follows a breakdown in trade talks last week, with each side assigning blame to the other.

Canada’s Automotive Parts Manufacturers’ Association warned that the new levies could cripple U.S. auto assembly lines. Neither the White House nor Canadian officials have provided comments, and major automakers have expressed doubt about the feasibility of the proposed tariffs, noting past instances where similar threats did not materialize.