Trump threatens 50% tariffs on all cars and trucks amid Canada trade spat

President Donald Trump speaks during a campaign rally for U.S. Senator Darline Graham (R-SC) at the Myrtle Beach Convention Center in Myrtle Beach, South Carolina, Friday.

President Donald Trump speaks during a campaign rally for U.S. Senator Darline Graham (R-SC) at the Myrtle Beach Convention Center in Myrtle Beach, South Carolina, Friday. (Evan Vucci, Reuters)


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KEY TAKEAWAYS
  • Trump announced 50% tariffs on cars trucks and parts starting Jan. 1 2027.
  • The announcement follows failed trade talks with Canada which may retaliate.
  • Auto executives doubt the tariffs will materialize citing past unfulfilled threats.

WASHINGTON — U.S. tariffs on all ​cars and trucks, automotive parts and steel will be increased to 50% starting January 1, 2027, President Donald Trump ‌said in a social post on Monday after trade talks with Canada collapsed ⁠over the weekend.

"Build in ​the U.S. and there are ⁠ZERO TARIFFS. Canada will be treated like a State no ‌longer!" Trump wrote.

"On ‌Trade, and in other ways, also, they are among ⁠the worst Nations in the World ⁠to deal with. They feel entitled, and yet, WE DON'T NEED CANADA, THEY NEED US!"

The White House did not immediately respond to a request for comment seeking more details on the threatened tariffs. Representatives for the Canadian government ‌also did not immediately respond to ​a request for comment.

The two countries failed to reach a trade deal late on Friday, with each side blaming the other as Canada readied tariffs on some U.S. goods in retaliation for 50% levies ordered by Trump on other Canadian products.

Major automakers did not immediately comment on Trump's announcement.

But ​auto executives, speaking to Reuters on the condition of anonymity, ‌raised skepticism about ‌Trump's threat, ⁠noting the president has previously announced large tariffs that never materialized and that any tariff of that size would likely spark a massive Canadian retaliation.

They also noted January was months away ‌following November's midterm elections ​and that Trump's threat could ‌aimed at restarting talks.

Contributing: Katharine ​Jackson

The Key Takeaways for this article were generated with the assistance of large language models and reviewed by our editorial team. The article, itself, is solely human-written.

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David Shepardson and Daphne Psaledakis

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