US President Donald Trump speaks to reporters before boarding Air Force One at Joint Base Andrews, Maryland on Aug. 21, 2026.<\/p>\n
Saul Loeb | AFP | Getty Images<\/p>\n
President Donald Trump<\/a> on Monday said the U.S. will raise tariffs<\/a> on imports of cars<\/a>, trucks and auto parts from Canada<\/a> to 50% on Jan. 1, 2027, following a breakdown in trade negotiations<\/a> last week.<\/p>\n “Canada has been ripping off the United States of America for years,” Trump wrote in a Truth Social post<\/a>, accusing the long-time trading partner of hurting U.S. farmers through its own tariff policies. <\/p>\n “Not sustainable, and NOT ANYMORE!” he wrote. “On January First, 2027, Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50%.”<\/p>\n Trump’s latest tariff threat would double top-line U.S. tariffs on Canadian auto imports, which currently sit at 25%. Canada sought to lower those tariffs as part of a new trade deal with the U.S., which appeared to be inches from completion before falling apart Friday night.<\/p>\n U.S. tariffs on Canadian steel imports are already at 50%.<\/p>\n “Build in the U.S. and there are ZERO TARIFFS,” Trump’s post declared. “Canada will be treated like a State no longer!” <\/p>\n He went on to attack Canada as being “among the worst Nations in the World to deal with” on trade and elsewhere.<\/p>\n “They feel entitled, and yet, WE DON’T NEED CANADA, THEY NEED US! They do 95% of their business with the U.S., with us, the exact opposite!” Trump wrote.<\/p>\n The Canadian auto market is small compared to the U.S.: Fewer than 2 million new vehicles were sold there in 2025, compared with more than 16 million sold in the U.S. <\/p>\n Only 5.4%, or roughly 861,000, vehicles produced in Canada were sold last year in the U.S., according to GlobalData.<\/p>\n The Detroit automakers have grown smaller when it comes to vehicle production, while Japanese automakers Toyota and Honda have significantly grown production in recent years.<\/p>\n Toyota and Honda represented 76.5% of Canada’s vehicle production in 2025, and each of Toyota and Honda produced more vehicles in Canada than Ford, General Motors, and Stellantis combined, according to a leading trade organization representing non-Detroit automakers<\/a>.<\/p>\n This is breaking news. Please refresh for updates.<\/p>\n