Trump threatens 50% tariffs on all cars and trucks from Canada amid trade fight

President Donald Trump threatened on Monday to raise U.S. tariffs on all cars, trucks and automotive parts from Canada to 50% starting January 1, 2027, after last week’s negotiations collapsed. A proposed deal would have reduced the top tariff on Canadian cars and light-duty trucks from 25% to 15%, and cut aluminum and steel tariffs from 50% to 25%, but it failed over issues including whether U.S. relief would apply to medium- or heavy-duty trucks. The escalation could disrupt one of the world’s most integrated auto supply chains, with U.S. production reliant on Canadian-made parts. Auto stocks fell: Ford and Stellantis dropped 3.6% and 4.2%, respectively, while General Motors, Toyota and Honda also declined. Canada plans retaliatory tariffs beginning September 8.