Trump threatens 50% tariff on Canadian autos, trucks by Jan. 1

U.S. President Donald Trump stands during the National Anthem at the start of the NTT INDYCAR Series on August 23, 2026 in Washington, DC. Photo by Pool /Getty Images

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OTTAWA – U.S. President Donald Trump threatened to impose a 50 per-cent tariff on Canadian autos and trucks on Monday, the latest escalation in the trade war between Canada and the U.S., after trade talks collapsed late last Friday.

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“On January First, 2027, Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50%,” said Trump, in a post on Truth Social. “Build in the U.S. and there are ZERO TARIFFS. Canada will be treated like a State no longer!”

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The current tariff rate on Canadian autos sits at 25 per cent.

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The president added that Canada is one of the most “entitled” countries to deal with in terms of trade.

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“On Trade, and in other ways, also, they are among the worst Nations in the World to deal with,” said Trump. “They feel entitled, and yet, WE DON’T NEED CANADA, THEY NEED US!”

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Canada and the U.S. were close to a potential trade agreement on Friday, which would have included relief for Canadian steel, aluminum, autos and lumber from Section 232 tariffs, and the avoidance of Section 338 tariffs on $29 billion worth of Canadian goods.

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However, Prime Minister Mark Carney suspended trade talks late Friday evening, citing several last-minute demands from the U.S. that made a deal untenable for Canada. Carney has promised to match the Section 338 tariffs “dollar for dollar” with retaliatory measures set to take effect Sept. 8.

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More to come.

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National Post

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