President Donald Trump has raised tariffs on all Canadian cars, trucks, auto parts, and steel to 50% starting in 2027, doubling the current 25% duty. Ontario Premier Doug Ford threatened to cut off electricity and critical minerals in retaliation. The S&P 500 and Nasdaq indexes fell Monday following the announcement. No trade deal has been reached, and Trump accused Canada of “ripping off” the US for years.
President Donald Trump announced via X that tariffs on all Canadian cars, trucks, auto parts, and steel will increase to 50% starting January 1, 2027. In a Truth Social post, Trump wrote that Canada has been “ripping off the United States of America for years” and that the situation is “Not sustainable, and NOT ANYMORE!”
The existing tariff on Canadian auto imports is 25%, so the new rate would double that top-line duty. The announcement comes after a trade deal between the US and Canada fell through last week. Trump believes Canada continues to “rip us off” and accused the country of hurting US farmers through its own tariff policies.
On Saturday, the US imposed 50% tariffs on about $20 billion of Canadian goods, including wine, cement, hockey sticks, and other products. Those duties were imposed in retaliation for alleged Canadian trade discrimination against US cars, alcohol, and dairy.
In response, Ontario Premier Doug Ford threatened to cut off electricity and critical minerals to the US if the trade war worsens. Trump has long accused Canada of taking advantage of US defense protections and recently called Canadian negotiators “nasty.” From 2024 onward, Trump has implemented sweeping tariffs on Canada and Mexico, accusing both of allowing fentanyl and illegal immigration across the borders, a claim many in Canada felt was unjustified.
The trade war continues to affect several important industries, from automotive to electricity and minerals. On Monday, the S&P 500 and Nasdaq indexes both declined following the tariff announcement.
