August 24, 2026 | 10:35 pm
TEMPO.CO, Jakarta - US President Donald Trump said he would impose a 50 percent tariff on Canadian automobiles, auto parts and steel starting January 1, 2027, escalating a trade dispute with the United States’ northern neighbor.
Trump made the announcement on Monday, August 24, after trade talks between Washington and Ottawa collapsed last week.
“Build in the US and there are ZERO TARIFFS. Canada will be treated like a US State no longer!” Trump wrote on social media, as cited by DW.
He also accused Canada of being among the most difficult countries for the United States to deal with and said Washington did not need its northern neighbor.
The tariff currently imposed by the US on Canadian automobiles stands at 25 percent. Trump’s proposed measure would double the rate to 50 percent.
Trade Talks Collapse
DW also reported that the announcement came days after the US and Canada failed to reach a trade agreement aimed at preventing higher tariffs on a range of Canadian products.
The breakdown in negotiations led Washington to impose 50 percent tariffs on about $20 billion worth of Canadian goods, including hockey sticks, fishing rods, wine and dairy products. The tariffs took effect Saturday.
The affected goods account for roughly 5 percent of Canada’s annual exports to the United States.
The two governments have blamed each other for the collapse of the talks.
Canada Plans Retaliation
Canadian Prime Minister Mark Carney said Ottawa would respond with retaliatory tariffs starting September 8.
The planned measures will cover products including steel, dairy goods, appliances, agricultural equipment, pulp and paper, and electronics.
The United States accounts for roughly 70 percent of Canada’s exports, leaving Ottawa heavily exposed to further trade restrictions.
Carney accused Washington of turning the countries’ deep economic ties into a weapon, saying Canada had been “attacked” by the new US tariffs.
“They asked too much and offered too little,” Carney said over the weekend.
US chief trade negotiator Jamieson Greer, meanwhile, defended Washington’s measures, saying the United States had been pushed to act after what he described as a year of Canadian retaliation.
“We've said enough, and so we've taken countermeasures,” Greer said, adding that the US was seeking to protect American workers and supply chains.
Canada had not yet commented on Trump’s latest tariff announcement as of Monday.
No further trade negotiations between the two countries have been scheduled.
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