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Monday the U.S. President threatened higher tariffs against Canada's auto industry. Photo by Mike Kropf/Getty ImagesUnited States President Donald Trump on Monday announced that he plans to raise tariffs on Canadian autos and auto parts to 50 per cent starting in January, marking the latest escalation of trade tensions between the two countries.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an Accountor“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 the social media site Truth Social. “Build in the U.S. and there are ZERO TARIFFS. Canada will be treated like a State no longer!”The announcement comes after U.S. tariffs targeting $28-billion worth of Canadian goods went into effect on Saturday following the breakdown of talks between Washington and Ottawa on Friday night.SUBSCRIBER EXCLUSIVE: FP West: Energy Insider brings you behind the oilpatch’s closed doors with exclusive insights from insiders every Wednesday morning.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of FP West: Energy Insider will soon be in your inbox.We encountered an issue signing you up. Please try againPrime Minister Mark Carney, who likened the U.S. trade demands to an attack, said Canada would retaliate with dollar-for-dollar tariffs of its own on Sept. 8.Tariffs on autos were a central part of the tensions that ultimately derailed the trade discussions on Friday.For decades, the two countries’ auto sectors have been integrated with many of the same companies building autos and shipping parts back and forth over the border.Currently, the Canadian auto sector faces a 25 per cent tariff on vehicles exported to the U.S., but that amount can be lowered based on the percentage of U.S. parts contained within a vehicle.There was talk during the latest negotiations of lowering the tariff to 15 per cent, but Carney said Saturday that the U.S. had not been willing to extend that rate to medium or heavy vehicles such as trucks.That exclusion would have hurt companies such as Ford Motor Co., which recently invested billions of dollars to build F-Series pick-up trucks in Oakville, and General Motors Company, which builds pick-ups in Oshawa, as well as some bus manufacturers.Initial reaction suggested Canadian industry leaders were taking this latest threat in stride. One executive, granted anonymity because of the sensitivity of the matter, said the four-month wait undercut the severity of Trump’s threat.More to come … Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.