Trump vows to double Canadian auto tariffs to 50%

The proposed Jan. 1 increase follows the collapse of US-Canada trade talks and could disrupt an integrated North American supply chain.

President Donald Trump said the US would double tariffs on Canadian vehicles and parts to 50% starting Jan. 1, escalating a trade fight after negotiations with Canada broke down.

Trump said tariffs on cars, trucks, automotive parts and steel would rise to 50%. The current auto tariff is 25% and applies only to non-US content, while imported steel already faces a 50% charge.

The proposed increase could disrupt the integrated US-Canada auto supply chain. It was unclear how the administration would handle the carve-out for US-made content, which means Canadian vehicles typically face about half the headline rate in practice.

The Jan. 1 start date leaves room for negotiations, although Canadian officials see little chance of talks resuming before November’s midterm elections. Prime Minister Mark Carney said Canada would respond with tariffs of its own on Sept. 8.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.

President Donald Trump said the US would double tariffs on Canadian vehicles and parts to 50% starting Jan. 1, escalating a trade fight after negotiations with Canada broke down.

Trump said tariffs on cars, trucks, automotive parts and steel would rise to 50%. The current auto tariff is 25% and applies only to non-US content, while imported steel already faces a 50% charge.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.