President Donald J. Trump announced new 50% tariffs on cars, trucks and auto parts from Canada to take effect Jan. 1.
“Canada has been ripping off the United States of America for years,” Trump said on Truth Social. “Their ridiculously high tariffs on our Farmers and farm products has made life impossible for these great American Patriots, and has long created a 60 Billion Dollar Deficit between our two Countries. Not sustainable, and NOT ANYMORE!”
The new tariffs would also affect steel, which already carries a 50% tariff.
The two countries had been attempting to negotiate a new trade deal when talks failed late Friday. Around 20% of U.S. heavy truck imports come from Canada, and there is already a 25% Section 232 tariff on medium- and heavy-duty trucks and parts, provided those items do not meet specific U.S. Mexico Canada Agreement regional content values.
“Canada will be treated like a State no longer!” the president continued. “On Trade, and in other ways, also, they are among the worst Nations in the World to deal with.”
After talks failed Friday, the U.S. imposed another 50% tariff on $20 billion of Canadian goods, including cement, wine and hockey sticks. The administration says those tariffs are in retaliation for alleged Canadian trade discrimination against U.S. cars, alcohol and dairy products.
The U.S., the Canadians say, made unreasonable demands at the last minute of negotiations after agreeing to a tentative framework. Canada will match U.S. tariffs dollar for dollar, says Prime Minister Mark Carney, targeting U.S. steel, dairy products, appliances, agricultural equipment, pulp and paper and electronics. The Canadian tariffs will take effect Sept. 8.
“It is evident it is a new attack by the Americans on Canada,” Carney said of Saturday’s tariffs. “So, it is an attack in a war. It is not a good choice. We want a global accord between the two countries.”
One of those last-minute proposals, Carney says, was an exclusion for medium- and heavy-duty trucks from tariff relief, as well as restrictions on Canada trading with other countries, such as China.
“We cannot accept what they offered and we will not give what they asked,” Carney said.
It’s not just heavy-duty trucks that could be affected by the trade war. Canada also supplies more than 80% of imported electricity to the U.S., mainly in the Pacific Northwest, Midwest, New York and New England.
Sen. Amy Klobuchar (D) of Minnesota, who shares a border with Canada, says Trump’s new tariffs will raise prices.
“We have always found a way to work out trade because it hugely benefits both countries,” the Democrat wrote on X. “But not with this President.”
Republicans were split on the tariffs. Sen. Bernie Moreno (R-Ohio), backed Trump.
“Canada’s economy only exists by stealing American jobs,” Moreno posted on X. “Carney is also right that ‘America has changed.’ We no longer have a President that sells out American workers.”
