Donald Trump announced on Monday that he will impose a 50% tariff on all cars, trucks, auto parts, and steel coming from Canada starting January 1, 2027, in a new escalation of the trade war between the two countries, according to the agency EFE.
The announcement, posted on his Truth Social network, introduces a new element regarding the current situation: while the general tariffs of 50% on Canadian imports came into effect last weekend, Trump is now specifically setting that levy for the entire automotive sector and for all steel, starting in January.
Currently, Washington imposes a 25% tariff solely on certain Canadian vehicles that do not comply with the USMCA free trade agreement; the new announcement would double that figure and extend it to all cars. In the case of steel, the 50% tariff was already applicable to certain products, but the new decree would generalize it to the entire category starting in 2027.
"Canada has been scamming the United States of America for years (...) On January 1, 2027, tariffs on all automobiles, trucks (both large and small), auto parts, and steel will increase to 50%. If they are manufactured in the U.S., there will be no tariffs," wrote Trump.
The leader accused Ottawa of imposing "ridiculously high tariffs" that he claimed have harmed American farmers and created "a $60 billion deficit" in bilateral trade. "It’s unsustainable and it's over!" he added.
Trump also hardened his rhetoric towards the neighboring country: "Canada will no longer be treated as if it were just another state! In trade matters, and in other aspects as well, they are among the worst nations in the world to negotiate with."
The announcement comes just days after the failure of negotiations between the two countries, when last Friday the Canadian Prime Minister Mark Carney withdrew his negotiators, deeming the conditions added by Washington in the last hours before the deadline "unacceptable."
With the breakdown of dialogue, at midnight on Saturday, a 50% tariff came into effect on approximately $20 billion worth of Canadian products, a measure that had already been announced following the executive order signed by Trump in July.
The trade war between both nations formally began in February 2025, when Trump imposed a 25% tariff on Canadian imports. Since then, the levies escalated to 35% in August 2025 and to a general 50% in July 2026, following Trump's refusal to renew the USMCA under the current terms.
Carney, for his part, promised that Canada will match "dollar for dollar" the new tariffs from Washington starting September 8, with retaliation anticipated in sectors such as dairy, appliances, agricultural machinery, paper pulp, and electronics.
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