OTTAWA — U.S. President Donald Trump threatened Monday to impose 50% tariffs on all Canadian cars, trucks, automotive parts and steel beginning January 1st, escalating the trade war days after Prime Minister Mark Carney withdrew Canada from negotiations.Trump accused Canada of “ripping off” the United States and said the country would no longer receive preferential treatment, two days after 50% U.S. tariffs took effect on roughly $28 billion worth of Canadian goods..“Canada will be treated like a State no longer!” Trump wrote on Truth Social.“On January First, 2027, Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50%. Build in the U.S. and there are ZERO TARIFFS.”Trump said Canada’s tariffs on American farmers and agricultural products had created what he described as a US$60-billion trade deficit.“Not sustainable, and NOT ANYMORE!” he wrote.“On Trade, and in other ways, also, they are among the worst Nations in the World to deal with. They feel entitled, and yet, WE DON’T NEED CANADA, THEY NEED US!”.Trump also claimed Canada conducts 95% of its business with the United States.Official figures show Canada remains heavily dependent on the American market, but not to that extent. About 72% of Canadian merchandise exports went to the United States in 2025.The Office of the U.S. Trade Representative reported a $US48.3 billion American goods trade deficit with Canada in 2025. However the United States recorded a $US27.7 billion surplus in services trade with Canada that same year. Trump’s threat follows the collapse of negotiations late Friday, when Carney ordered Canadian negotiators to return to Ottawa.Carney said the United States introduced last-minute demands that were “unfair, uneconomic” and raised doubts about whether any agreement with Washington could be trusted.“Throughout, our goal has been to secure the best deal for Canadians, never a deal at any price or on any deadline,” Carney said in a statement dated Friday.“At the very last minute, however, last-minute changes in the U.S. proposed terms were unfair, uneconomic, and called into question the reliability of any deal.”The prime minister said Canada had sought continued tariff-free access for most Canadian businesses, relief for the auto, steel and other strategic industries, and protection for Canadian sovereignty.The failed negotiations allowed a separate 50% American tariff package to take effect Saturday. Those duties cover about five per cent of Canadian exports to the United States, including agricultural goods, wine, cement, hockey equipment, furniture and some products previously protected under the Canada-U.S.-Mexico trade agreement.Carney said Canada would respond dollar for dollar, with retaliatory tariffs scheduled to begin September 8.Ottawa is preparing measures targeting American steel, dairy products, appliances, agricultural equipment, pulp and paper and electronics.The prime minister said Canada had been prepared to remove remaining retaliatory tariffs on steel, aluminum and automobiles if Washington substantially reduced its duties.He said the government was also willing to encourage provinces to return American alcohol to store shelves.Carney nevertheless said the final American offer failed to meet Canada’s objectives.“Canada has what the world wants,” he said. “And we will not allow any nation to determine our future.”
