Trump Says Canadian Auto and Steel Tariffs Will Rise to 50% as Trade Fight Escalates

President Donald Trump said Monday that U.S. tariffs on Canadian cars, trucks, automotive parts and steel will rise to 50% beginning Jan. 1, 2027, escalating a trade dispute days after negotiations between Washington and Ottawa collapsed. The announcement came as Canada prepared retaliatory tariffs and Ontario Premier Doug Ford told the Associated Press that Canada should be prepared to restrict electricity and critical-mineral exports to the U.S. if the dispute worsens.

• Trump announced the Jan. 1 tariff increase in a Truth Social post Monday; a new presidential proclamation implementing the specific increase had not yet been identified at the time of publication.
• The U.S. and Canada had been negotiating potential reductions to existing auto, steel and aluminum tariffs before talks broke down Friday.
• Separate 50% U.S. tariffs on roughly $20 billion of Canadian imports took effect Saturday after Trump temporarily delayed them for three days while negotiations continued.
• Canada plans dollar-for-dollar retaliation beginning Sept. 8, targeting U.S. steel, dairy, appliances, agricultural equipment, pulp and paper and electronics.
• U.S. Trade Representative Jamieson Greer blamed Canada for the breakdown Monday, while Canadian officials have said Washington introduced unacceptable demands late in negotiations.
• Ford told the AP that Canada should be prepared to cut electricity and critical-mineral supplies to the U.S. if the trade conflict intensifies.

Relevant Companies

• General Motors ($GM) — Operates major Canadian assembly facilities and relies on integrated U.S.-Canada automotive supply chains.
• Ford ($F) — Manufactures vehicles and engines in Ontario and participates in cross-border automotive supply chains.
• Stellantis ($STLA) — Operates Canadian manufacturing facilities and has already altered North American production plans amid U.S.-Canada tariff pressures.

Editor’s Note: This is a developing story. This article may be updated as more details become available.