Trump threatens 50% tariffs on all cars and trucks amid Canada trade spat
XLY•White House and Canada did not immediately comment
The White House did not immediately respond to a request for comment seeking more details on the threatened tariffs. Representatives for the Canadian government also did not immediately respond to a request for comment.
Trade talks collapse as both sides prepare retaliation
The two countries failed to reach a trade deal late on Friday, with each side blaming the other as Canada readied tariffs on some U.S. goods in retaliation for 50% levies ordered by Trump on other Canadian products.
Automakers question whether the threat will materialize
Major automakers did not immediately comment on Trump's announcement.
But auto executives, speaking to Reuters on the condition of anonymity, raised skepticism about Trump's threat, noting the president has previously announced large tariffs that never materialized and that any tariff of that size would likely spark a massive Canadian retaliation.
They also noted January was months away following November's midterm elections and that Trump's threat could aimed at restarting talks.
Trump says tariffs on cars, trucks, parts and steel will rise
U.S. tariffs on all cars and trucks, automotive parts and steel will be increased to 50% starting January 1, 2027, President Donald Trump said in a social post on Monday after trade talks with Canada collapsed over the weekend.
"Build in the U.S. and there are ZERO TARIFFS. Canada will be treated like a State no longer!" Trump wrote.
