US President Donald Trump has said that he would double tariffs on Canadian vehicles beginning in 2027, as the neighbouring countries spiral towards an escalating trade war.
"On January First, 2027, Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50%," he wrote on his Truth Social platform on Monday.
The current US tariff on autos stands at 25 percent for non-US content, while imported steel to the US generally faces a 50-percent duty.
"Build in the US and there are ZERO TARIFFS. Canada will be treated like a State no longer!" Trump 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's latest salvo comes after the North American neighbours failed on Friday to reach a deal to avert new 50-percent tariffs imposed by the Trump administration on select Canadian goods.
The White House had alleged "discriminatory treatment" by Canada against US alcohol, automobile and dairy products in rolling out the duties.
Trump delayed their implementation by three days last week as Washington and Ottawa stepped up negotiations towards a trade pact.
However, the steep duties took effect Saturday as both sides failed to reach an agreement, and it hits about 5.5 percent of Canadian goods entering the United States, or some $20 billion worth of products ranging from hockey sticks to cement.
Canadian Prime Minister Mark Carney has since announced retaliatory tariffs on the US after walking away from what he called a "bad deal."
He also accused Washington of making a last-minute "power play," saying the US sought to limit Canada's ability to negotiate trade deals with other countries.
