US President Donald Trump (left) and Canadian Prime Minister Mark Carney. [AFP]
US President Donald Trump (left) and Canadian Prime Minister Mark Carney. [AFP]

The trade war between the United States and Canada is intensifying. After Canada threatened retaliatory tariffs in response to US duties of 50%, Donald Trump announced he would raise tariffs on Canadian automobiles, auto parts and steel to 50% starting next year.

Trump said Monday (local time) on his Truth Social platform that "starting January 1, 2027, tariffs on cars, light and heavy trucks, auto parts and steel will be raised to 50%."

He then pressed Canadian companies to shift production to the United States, saying, "If you manufacture in America, there are no tariffs."

Trump also unleashed a broadside against Canada. "Canada has been ripping off the United States for a long time and is one of the most difficult countries to deal with in trade and many other areas," he said.

He went on to say, "We don't need Canada, but Canada needs us," adding that 95 percent of Canada's trade is with the United States "while we are the exact opposite."

Trump also revived the issue of agricultural goods, saying "outrageously high tariffs" on American farm products had made life impossible for "great patriots" and produced a $60 billion deficit. "This is no longer sustainable," he said.

The announcement came amid a rapid escalation in tariffs between the two countries following the collapse of recent trade negotiations.

The United States had earlier imposed 50% tariffs on $20 billion worth of Canadian goods. In response, Canadian Prime Minister Mark Carney called the US move an "attack" and said Canada would impose retaliatory tariffs on an equivalent value of American products.

Trump had also criticized Canada on Monday (local time), saying the country "wants the benefits of being a US state without actually being one" and that "this cannot continue."

With Canada refusing to back down, Trump widened his pressure campaign to include automobiles and steel. The auto industry is particularly exposed, as US and Canadian supply chains are deeply intertwined across the border, meaning the tariffs — if implemented — could significantly raise costs for automakers on both sides.

Some analysts note that by setting the tariff increase for Jan. 1 rather than immediately, Trump has left the door open for further negotiations. With more than four months before the duties take effect, the move could serve as a bargaining chip to pressure Canada into making concessions.


sjy@heraldcorp.com