President Donald Trump announced that the U.S. will raise tariffs on imports of cars, trucks, and auto parts from Canada to 50% starting January 1, 2027.
This latest tariff threat doubles the current 25% U.S. tariffs on Canadian auto imports. Canada had sought to lower these tariffs as part of a new trade deal with the U.S., which fell apart last week.
Trump stated that “Canada has been ripping off the United States of America for years,” accusing the longtime trading partner of harming U.S. farmers through its tariff policies.
“Not sustainable, and NOT ANYMORE!” he wrote.
On January 1, tariffs on all cars, trucks, both large and small, automotive parts, and steel will be increased to 50%.
Trump also criticized Ontario Premier Doug Ford, who threatened to escalate the U.S.-Canada trade war by cutting off America's access to electricity and critical minerals.
“Someone should get these clowns to 'fall in line' or the consequences for Canada will be far WORSE!” Trump wrote.
The Canadian auto market is small compared to the U.S.: fewer than 2 million new vehicles were sold there in 2025, versus more than 16 million sold in the U.S.
Automotive parts can cross borders several times, potentially exposing them to multiple tariff charges.
