U.S. President Donald Trump pledged to double tariffs on Canadian vehicles starting next year, as the neighboring countries and historic allies spiral towards an ever-escalating trade war.
"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 Monday on his Truth Social platform.
The current U.S. tariff impacting Canadian autos stands at 25% for non-U.S. content, while imported steel to the United States generally faces a 50% duty.
Trump's latest threat comes after the North American neighbors failed Friday to reach a deal to avert new 50% U.S. tariffs on select Canadian goods. The duties took effect on Saturday.
Canadian Prime Minister Mark Carney has since announced retaliatory tariffs targeting the United States after walking away from what he called a "bad deal."
