‘WE DON’T NEED CANADA, THEY NEED US’: Trump announces 50% tariffs on imported cars, trucks from Canada starting Jan 2027

US President Donald Trump on Monday (Aug 24) threatened to impose 50 per cent tariffs on imported cars, trucks, automobile parts and steel from Canada starting January 1, 2027, escalating a growing trade dispute with Ottawa. The American president announced on Truth Social, days after Canadian Prime Minister Mark Carney warned that Canada would retaliate against any new US tariffs on Canadian goods.

“Canada has been ripping off the United States of America for years,” Trump wrote, accusing the country of being among the “worst Nations in the World to deal with” on trade. Canada is the third-largest source of US imports. More than $380 billion worth of goods crossed the US-Canada border in 2025, according to US Census data.

Trump's latest threat comes after a fresh round of tariffs on Canadian goods came into effect at 12:01 am ET on Saturday, following the breakdown of negotiations between Washington and Ottawa. Carney withdrew Canadian negotiators from the talks late Friday, saying the US had proposed new terms that were “uneconomic” and “unfair”.

The tariffs imposed on Saturday affected a wide range of Canadian products, including hockey sticks and building materials. “We cannot control the storm blowing in from Washington,” Carney said on Saturday. He added that Canada would match Washington's new tariffs “dollar for dollar” to protect Canadian workers, farmers, families and businesses.

Shortly before Trump's latest announcement, US Trade Representative Jamieson Greer sought to downplay the impact of the tariffs imposed on Saturday. “I think the markets understand that this affects a very small amount of trade,” Greer told CNBC, adding that he would not describe the measures as a “trade war”.