WASHINGTON – President Donald Trump said he's doubling tariffs on imported automobiles and auto parts from Canada to a rate of 50%, further escalating a trade war with the United States' northern neighbor that erupted over the weekend after negotiations between the two countries collapsed.
Trump announced the move in an Aug. 24 post on Truth Social, saying "Canada has been ripping off the United States of America for years" and accusing the country of placing "ridiculously high" tariffs on U.S. farm exports to Canada. He said the new tariff rate for automobiles will begin Jan. 1, 2027.
"Build in the U.S. and there are ZERO TARIFFS. Canada will be treated like a State no longer! On Trade, and in other ways, also, they are among the worst Nations
in the World to deal with. They feel entitled, and yet, WE DON’T NEED CANADA, THEY NEED US!" Trump said.
Trump's latest threat comes after 50% U.S. tariffs on many other Canadian goods went into effect just after midnight on Aug. 22 after his administration were unable to strike a trade deal with Canadian Prime Minister Mark Carney. Democrats seized on the tariffs ahead of the November midterm elections, warning the taxes on imports will result in American consumers paying higher costs.
After ordering Canada's trade negotiators to return home, Carney said Canada would match Trump's tariffs "dollar for dollar," with retaliatory tariffs coming next month. He said details of those actions would be released in the coming days.
Trump last year imposed a baseline 25% tariff on imported automobiles and auto parts, though the rate differs for some trading partners based on deals reached with his administration. Trump, in his social media post, also said he would hike Canada's steel tariff to 50%, but it is already set at 50%.
The 50% tariffs that went into effect Aug. 22 apply to just over 5% of Canadian exports to the United States, including on various goods such as wine, dairy, hockey sticks and cement.
Carney said about $28 billion worth of goods would be tariffed. They do not apply to exempted goods including energy, potash, fish and critical minerals. The tariffs do not qualify for preferential treatment under the U.S.-Mexico-Canada free-trade agreement, which shielded many Canadian goods from earlier U.S. tariffs.
Reach Joey Garrison on X @joeygarrison.
This article originally appeared on USA TODAY: Trump vows to double Canada auto tariffs to 50%, escalating trade war
