Trump Threatens 50% Tariffs on Canadian Cars, Trucks and Steel as US-Canada Trade War Escalates

Brief by Shorts91 Newsdesk / 03:43pm on 24 Aug 2026,Monday International

US President Donald Trump has threatened to raise tariffs on Canadian cars, trucks, automotive parts and steel to 50% from January 1, 2027, escalating the trade dispute between the two countries. The announcement followed the collapse of trade talks between Washington and Ottawa. Trump accused Canada of imposing unfair tariffs on US farmers and said Canada had taken advantage of the United States for years. Canada has already indicated it could retaliate against US tariffs on a range of American goods. Trump said manufacturers could avoid the higher duties by producing vehicles and automotive parts in the United States. The proposed increase would further intensify trade tensions between the two closely linked North American economies.

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