In brief
President Donald Trump announced a dramatic increase in U.S. tariffs on Canadian cars, trucks and auto parts from 25% to 50%, set to take effect on January 1. The move follows last week's collapse of trade talks, with Canadian officials warning that the U.S.‑imposed deadline would have triggered the hike on nearly $20 billion of Canadian exports. Ontario Premier Doug Ford publicly criticized the tariff threat and suggested reciprocal duties on U.S. energy and minerals, while Prime Minister Mark Carney pledged Canada would implement matching tariffs. Both sides warn the dispute could strain the $1.6 trillion US‑MCA pact and push Canada toward recession.
President Donald Trump threatened to double U.S. tariffs on Canadian cars, trucks and auto parts from 25% to 50% taking effect on 1 January, igniting a new hot spot in the U.S.–Canada trade saga.
The announcement follows last week’s collapse of negotiations, when Canada walked away from a U.S.‑imposed deadline that would have imposed the hike on nearly $20 billion of Canadian exports.
In a press conference set for Tuesday, Mark Carney said Canada would “protect and support Canadian workers and businesses” and would retaliate with equal tariffs.
Ontario Premier Doug Ford blasted Trump’s move as a “bluster” and answered that Canada could levy higher duties on U.S. oil, gas, power and minerals.
Business leaders on both sides warn the tariffs could push Canada into recession and threaten the trilateral USMCA pact, worth $1.6 trillion.
