Move is latest deterioration in trade relations between neighbors with historically strong economic ties
Gaya GuptaMon 24 Aug 2026 14.55 EDTLast modified on Mon 24 Aug 2026 15.53 EDTSharePrefer the Guardian on GoogleDonald Trump announced a new 50% tariff on automobiles and crucial raw materials from Canada, the latest deterioration in trade relations between the two neighbors with historically strong economic ties.
The US president said that the increased tariffs would start on 1 January 2027 on all cars, trucks, automobile parts and steel. He also derided the nation’s tariffs on American farmers, writing on social media that Canada has been “ripping off” the US “for years”.
“On Trade, and in other ways, also, they are among the worst Nations in the World to deal with,” he wrote on Truth Social. “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!”
In response, Mark Carney told reporters on Monday that Trump’s announcement was largely expected.
“It’s not a surprise for us that the US would take some form of reprisal to our response to their unjustified tariff, which was on top of other unjustified tariffs,” the Canadian prime minister said from Quebec.
“But what message does that send to the workers in Michigan, in Ohio, in Kentucky, in Alabama, who rely on Canadian demand?” Carney continued. “We’re their largest customer for automobiles, more than the European Union, Japan, Korea, many others combined, and the United Kingdom.”
He added that Canada would be ready to move forward with talks “when the Americans go to the negotiating table first with the right attitude toward our industry and a true partnership”.
Trump’s announcement follows the last-minute collapse this weekend of a potential deal to lower tariffs on automobiles and other materials. After Trump imposed another 50% tariff on $20bn worth of Canadian exports, including hockey equipment and electronics, Carney, rejected the latest deal between the two nations on Saturday.
Carney said that the US “asked too much and they offered too little”, and he has vowed to match the American tariffs “dollar for dollar”.
Canada and the US have been longtime partners, trading roughly $909bn, according to the office of the US trade representative. But Trump’s second presidential term and his aggressive trade policies have brought the era of “deep ties” between the two nations to a close, Carney said last year, vowing to fight Trump’s sweeping tariffs.
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