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Trump says U.S. will hike Canada auto tariffs to 50% as trade dispute widens

  • U.S. President Trump announced a 50% tariff on Canadian autos, parts, and steel starting January 1, 2027, following failed trade talks and earlier tariffs imposed on $28 billion of Canadian goods.
  • Canadian Prime Minister Mark Carney pledged dollar-for-dollar retaliation with tariffs targeting U.S. steel, dairy, appliances, and agricultural equipment by September 8.
  • Canadian and U.S. auto industries expressed concern that the higher tariffs could harm both countries' manufacturers and potentially disrupt U.S. auto assembly.
  • The trade dispute received criticism for being an unnecessary conflict that could damage both economies and reduce crucial goods such as lumber and energy.
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US President Trump is escalating the trade conflict between the US and Canada.

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Reuters broke the news in London, United Kingdom on Monday, August 24, 2026.
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