US President Donald Trump has threatened to raise tariffs on cars imported from Canada as the trade war between the two neighbors continues to escalate. This was reported by BBC.
Trump stated that starting January 1, tariffs on Canadian cars and trucks, as well as auto parts, will increase from 25% to 50%. This comes after US-Canada trade negotiations failed last week, with each side blaming the other for making unreasonable last-minute demands.
Prime Minister Mark Carney deemed Trump's latest tax threat unexpected and accused the president of wanting to destroy Canada's auto industry, adding that Canada is ready to resume negotiations only if the US shows the right attitude.
The dispute began after several US and Canadian officials announced that the negotiations had been suspended without specifying a clear date for resumption.
Canada withdrew from the trade negotiations on Friday evening, just minutes before a deadline set by the US that would impose a 50% tariff on nearly $20 billion of Canadian imports.
The failure of the negotiations marked a significant change from earlier in the week when both sides were optimistic about the possibility of reaching a new US-Canada trade agreement. Canadian officials stated that the US had made last-minute demands that were unacceptable, including one that would limit the countries with which Canada could negotiate trade agreements.
Meanwhile, US officials claimed that it was Canada that made last-minute changes.
