Canada auto tariffs to hit 50% amid trade war
US President Donald Trump speaks to reporters before boarding Air Force One at Joint Base Andrews, Maryland on Aug. 21, 2026.
Saul Loeb | AFP | Getty Images
President Donald Trump on Monday said the U.S. will raise tariffs on imports of cars, trucks and auto parts from Canada to 50% on Jan. 1, 2027, following a breakdown in trade negotiations last week.
“Canada has been ripping off the United States of America for years,” Trump wrote in a Truth Social post, accusing the long-time trading partner of hurting U.S. farmers through its own tariff policies.
“Not sustainable, and NOT ANYMORE!” he wrote. “On January First, 2027, Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50%.”
Trump’s latest tariff threat would double top-line U.S. tariffs on Canadian auto imports, which currently sit at 25%. Canada sought to lower those tariffs as part of a new trade deal with the U.S., which appeared to be inches from completion before falling apart Friday night.
U.S. tariffs on Canadian steel imports are already at 50%.
“Build in the U.S. and there are ZERO TARIFFS,” Trump’s post declared. “Canada will be treated like a State no longer!”
He went on to attack Canada as being “among the worst Nations in the World to deal with” on trade and elsewhere.
“They feel entitled, and yet, WE DON’T NEED CANADA, THEY NEED US! They do 95% of their business with the U.S., with us, the exact opposite!” Trump wrote.
The Canadian auto market is small compared to the U.S.: Fewer than 2 million new vehicles were sold there in 2025, compared with more than 16 million sold in the U.S.
Only 5.4%, or roughly 861,000, vehicles produced in Canada were sold last year in the U.S., according to GlobalData.
The Detroit automakers have grown smaller when it comes to vehicle production, while Japanese automakers Toyota and Honda have significantly grown production in recent years.
Toyota and Honda represented 76.5% of Canada’s vehicle production in 2025, and each of Toyota and Honda produced more vehicles in Canada than Ford, General Motors, and Stellantis combined, according to a leading trade organization representing non-Detroit automakers.
This is breaking news. Please refresh for updates.