Donald Trump announced a new 50% tariff on automobiles and crucial raw materials from Canada, the latest deterioration in trade relations between the two neighbors with historically strong economic ties. The US president said that the increased tariffs would start on 1 January 2027 on all cars, trucks, automobile parts and steel. He also derided the nation’s tariffs on American farmers, writing on social media that Canada has been “ripping off” the US “for years”.
They do 95% of their business with the U.S., with us, the exact opposite!” In response, Mark Carney told reporters on Monday that Trump’s announcement was largely expected. Trump’s announcement follows the last-minute collapse this weekend of a potential deal to lower tariffs on automobiles and other materials. After Trump imposed another 50% tariff on $20bn worth of Canadian exports, including hockey equipment and electronics, Carney, rejected the latest deal between the two nations on Saturday.
Carney said that the US “asked too much and they offered too little”, and he has vowed to match the American tariffs “dollar for dollar”. Canada and the US have been longtime partners, trading roughly $909bn, according to the office of the US trade representative. But Trump’s second presidential term and his aggressive trade policies have brought the era of “deep ties” between the two nations to a close, Carney said last year, vowing to fight Trump’s sweeping tariffs.
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