Trump vows to double Canada auto tariffs to 50%, escalating trade war

WASHINGTON – President Donald Trump said he's doubling tariffs on imported automobiles and auto parts from Canada to a rate of 50%, further escalating a trade war with the United States' northern neighbor that erupted over the weekend after negotiations between the two countries collapsed.

Trump announced the move in an Aug. 24 post on Truth Social, saying "Canada has been ripping off the United States of America for years" and accusing the country of placing "ridiculously high" tariffs on U.S. farm exports. He said the new tariff rate for automobiles will begin Jan. 1, 2027.

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

Trump's latest threat comes after 50% U.S. tariffs on many other Canadian goods went into effect just after midnight on Aug. 22 after his administration were unable to strike a trade deal with Canadian Prime Minister Mark Carney. Democrats seized on the tariffs ahead of the November midterm elections, warning the taxes on imports will result in American consumers paying higher costs.

After ordering Canada's trade negotiators to return home, Carney said Canada would match Trump's tariffs "dollar for dollar," with retaliatory tariffs coming next month. He said details of those actions would be released in the coming days.

Trump last year imposed a baseline 25% tariff on imported automobiles and auto parts, though the rate differs for some trading partners based on deals reached with his administration. Trump, in his social media post, also said he would hike Canada's steel tariff to 50%, but it is already set at 50%.

The 50% tariffs that went into effect Aug. 22 apply to just over 5% of Canadian exports to the United States, including on various goods such as wine, dairy, hockey sticks and cement. Trump officials have characterized the tariffs as "defense measures" in response to "discriminatory" trade practices Canada has taken against on automobiles, dairy products and alcoholic beverages exported from the U.S. to Canada.

Carney said about $28 billion worth of goods would be tariffed. They do not apply to exempted goods including energy, potash, fish and critical minerals. The tariffs do not qualify for preferential treatment under the U.S.-Mexico-Canada free-trade agreement, which shielded many Canadian goods from earlier U.S. tariffs.

Ontario premier threatens surcharge on Canadian electricity used in US

In response to Trump's tariffs, Ontario Premier Doug Ford suggested his Canadian province could slap a surcharge on electricity it supplies to consumers in some states along the U.S.-Canada border.

"We'll use every tool in our toolbox, and then we'll see if President Trump says, do I need Canada?" Ford said at an Aug. 24 news conference. "Watch how he does cartwheels and he shouts and screams when we put the surcharge on. Matter of fact, I can't wait. I don't like the guy, simple."

Ford's remarks drew a response from Trump. "Lots of 'bluster' from Doug Ford," Trump wrote in a Truth Social post. "Remember, much of the Electricity, Oil, and Gas that Canada gets is transported through the U.S.A. Someone should get these clowns to 'fall in line' or, the consequences for Canada will be far WORSE!"

Top Trump administration officials on Aug. 24 took shots at Canada as they defended the president's trade position. Treasury Secretary Scott Bessent said the U.S. offered Canada "quite a good deal last week" but chose to reject it.

"Unfortunately, Prime Minister Carney rose to power on an anti-American, anti-Trump platform," Bessent said at a news conference, adding that the Canadian leader "seems to have gone back to his old playbook."

Vice President JD Vance, speaking at an event in Brewer, Maine, said the administration's negotiations with Canada are still ongoing but accused Canada of being a "backdoor for Chinese goods." He also said Canada "literally would get invaded by a foreign country if it were not for the umbrella of protection provided by the United States of America."

"How does Canada actually respond to that?" Vance said. "They apply ridiculous tariffs and other non-tariff duties on Maine products coming into Canada. And they don't expect Maine or anybody else to fight back? We're sick of that."

Reach Joey Garrison on X @joeygarrison.