Trump accuses 'entitled' Canada of 'ripping off US' as he escalates trade war even further
President Donald Trump has threatened to raise tariffs on Canadian cars, trucks, auto parts and steel to 50% from January 1, 2027, in a fresh escalation of the US-Canada trade war.
Trump made the announcement on Truth Social, where he accused Canada of 'ripping off the United States of America' and claimed the country had created a $60 billion trade deficit.
"On January First, 2027, Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50%," Trump wrote.
The president also said products built in the US would face 'ZERO TARIFFS' and declared: "Canada will be treated like a State no longer!"
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The threat came after trade negotiations between the two countries broke down, with a fresh wave of US tariffs on Canadian goods coming into effect following the collapse in talks.
Why did US-Canada trade talks collapse?
The BBC reported that the two countries had been engaged in intense negotiations since July, after Trump threatened to impose a 50% levy on almost $20 billion worth of Canadian imports.
Trump had temporarily paused those tariffs earlier this week, saying the US and Canada were close to reaching a deal that would be 'very good' for both countries.
But the negotiations fell apart shortly before a Friday night deadline.
Canadian Prime Minister Mark Carney said 'important progress' had been made, but it was 'not enough to meet our objectives for Canadians.'
"As a result, this evening, I have decided to suspend trade negotiations with the US and have directed negotiators to return to Ottawa," Carney said.
He described last-minute changes to the US proposals as 'unfair" and 'uneconomic' and said they called into question the reliability of any potential agreement.
US Trade Representative Jamieson Greer offered a different account, saying Canada had declined to finalize a deal under terms agreed earlier in the week.
Before the talks collapsed, negotiators had reportedly been discussing a deal that would have reduced US tariffs on Canadian steel and aluminum from 50% to 25%, while lowering tariffs on Canadian autos from 25% to 15%.
In exchange, Carney had asked Canadian provinces to restore US alcohol products to store shelves.
What goods are affected by Trump's new Canada tariffs?
The new US tariffs affect a range of Canadian goods including wine, dairy, cement, clothing and hockey equipment, accounting for around 5% of Canada's exports.
They come on top of existing tariffs on Canadian steel, aluminum, automobiles and lumber.
Canada is particularly exposed to the dispute because approximately 70% of its exports are sent south to the US.
The two countries have one of the world's most deeply integrated trading relationships.
Carney has said Canada will respond with reciprocal tariffs on US goods 'dollar for dollar.'
Ontario Premier Doug Ford has backed the approach, saying: "The prime minister has my full support for a strong response - tariff for tariff, dollar for dollar."
Trump, meanwhile, ended his Truth Social post by declaring: "WE DON'T NEED CANADA, THEY NEED US!"
Topics: Donald Trump, Mark Carney, Canada, US News
Thomas Bamford