Trump announces he will raise tariffs on Canadian cars and steel to 50% starting in 2027

President Donald Trump announced on Monday that he will increase tariffs on a range of Canadian automotive products starting in 2027, as these two partners escalate a tariff war, according to an AFP report.

Currently tariffs on automobiles are 25% if they do not include U.S. materials in their manufacturing, while steel imports already face rates of 50% across the board.

"On January First, 2027, Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50%," the Republican president wrote on Truth Social.

The United States and Canada failed on Friday in their negotiations to reach an agreement that would prevent the Trump administration from imposing new 50% tariffs on a range of Canadian products.

These tariffs took effect over the weekend. They apply to Canadian products valued at about $20 billion and account for 5.5% of Canada's total exports to its neighbor.

The United States has argued that Canada provides "discriminatory treatment" to imports from its neighbor of alcohol, automobiles and dairy products.

Prime Minister Mark Carney stated that Canada will impose retaliatory tariffs on the United States, rejecting what he considered a "bad deal."

The United States and Canada have yet to reach an agreement on revisions to the North American Free Trade Agreement (USMCA), which Trump refused to renew last month and which they share with Mexico.