Free daily briefing on global business news.
The threat would double the current 25% rate on Canadian vehicles and parts, days after trade talks between the two countries collapsed
(Anna Moneymaker/Getty Images)
President Donald Trump threatened Monday to raise tariffs on cars, trucks, and auto parts imported from Canada to 50% on Jan. 1, 2027, following the collapse of trade negotiations last week.
"On January First, 2027, Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50%," Trump wrote on Truth Social. The current tariff rate on Canadian auto imports stands at 25%, applied only to non-U.S. content in vehicles. U.S. tariffs on Canadian steel imports are already at 50%.
