Trump Threatens 50% Tariffs on Canadian Autos and Steel as $380 Billion Trade Rift Deepens
Updated
Updated · NBC News · Aug 24
Trump Threatens 50% Tariffs on Canadian Autos and Steel as $380 Billion Trade Rift Deepens
3 articles · Updated · NBC News · Aug 24
Summary
January 1, 2027 is the start date Trump set for 50% tariffs on Canadian cars, trucks, auto parts and steel, a new threat issued after Prime Minister Mark Carney vowed to match fresh U.S. duties.
Saturday’s U.S. tariffs had already hit a broad range of Canadian goods after talks collapsed, with Carney pulling negotiators on Friday and calling Washington’s new terms “uneconomic” and “unfair.”
Canada shipped more than $380 billion of goods to the U.S. in 2025, making it the third-largest import source and raising the stakes for any escalation in the tightly integrated North American auto supply chain.
Steel from Canada already faces a 50% U.S. tariff, and Trump did not clarify whether his latest threat would lift that to 100% or whether USMCA-compliant autos and parts would remain exempt.
The latest clash adds pressure on the USMCA, which the Trump administration said on July 1 it would not renew in its current form, leaving the pact under rolling annual reviews and negotiations.