The Trump administration is planning to raise tariffs on Canadian auto and steel imports to 50%, with the new rates set to take effect on January 1, 2027.

The tariff timeline so far

Section 232 tariffs already impose rates as high as 50% on imports of steel, aluminum, and copper derivatives, though certain exemptions have softened the blow for specific commodities.

In August 2026, the administration threatened to impose 50% tariffs on multiple Canadian goods under Section 338 of the Tariff Act of 1930. The legal justification centers on allegations that Canada has treated US exports unfairly, a characterization Ottawa has vigorously disputed. The effective date for those threats was August 19, 2026.

Negotiations hanging by a thread