President Trump announced that he will double tariffs on Canadian autos and steel to 50% starting January 1st.
Published August 24, 2026
U.S. President Donald Trump said he would double tariffs on Canadian cars and trucks and introduce tariffs on auto parts in 2027, in the latest attempt to put pressure on Ottawa after tariff talks broke down last week.
President Trump announced Monday that tariffs on Canadian autos and steel will be doubled to 50% starting Jan. 1. These are in addition to the 50% tariffs imposed on Saturday following the breakdown in trade negotiations between the two countries.
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President Trump’s intentions are unclear, as steel tariffs have already reached 50%. He also introduced a 50% tariff on auto parts that had not previously been imposed.
“If we build in the US, there will be zero tariffs. Canada will no longer be treated like a nation!” Trump wrote on his social media platform, Truth Social.
“They are one of the most difficult countries in the world to deal with, trade-wise and otherwise. They feel entitled, but we don’t need Canada, they need us!”
Canada is consistently one of the United States’ top two trading partners. Trade in goods and services with Canada totaled $872.3 billion last year, a decrease of 4.6%.
Canada exports more than three-quarters of its goods to the United States and imports nearly half of its goods from the United States.
U.S. auto production is heavily integrated with Canada and Mexico, and tariffs could have a dramatic impact on U.S. production.
“The threatened U.S. tariffs on Canadian auto parts will be paid for by U.S. auto assembly. Without these specific parts, auto assembly across the U.S. would grind to a halt,” said Flavio Volpe, president of the Canadian Auto Parts Industries Association.
The White House did not immediately respond to a request for comment seeking details on the threatened tariffs. Representatives for the Canadian government also did not respond to requests for comment.
The two countries failed to reach a trade deal late Friday, with each side blaming the other. Canada has prepared tariffs on some U.S. products in retaliation for the 50% tariffs President Trump ordered on other Canadian products.
Major automakers did not immediately comment on Trump’s announcement.
However, auto company executives expressed skepticism about Trump’s threat, speaking to Reuters on condition of anonymity, noting that Trump has previously announced large tariffs that have never materialized, and that tariffs of that size would likely trigger major retaliation from Canada.
They also noted that January is several months away and comes after the midterm elections in November, and argued that Trump’s threats may be aimed at resuming talks.
