President Donald Trump announced on Monday (24) that tariffs on cars, trucks, auto parts and steel imported from Canada will rise to 50% starting January 1, 2027. According to g1, the measure was posted on Truth Social and marks a new escalation in the trade war between the two countries, days after negotiations for a bilateral deal collapsed.
In the post, Trump said Canada "has been exploiting the United States for years" and attacked Canadian tariffs on American farm goods, which he claims created a $60 billion deficit between the two countries.
"Their absurdly high tariffs on our farmers and agricultural products have made life impossible for these great American patriots. This is not sustainable, and IT WILL NOT HAPPEN ANYMORE!", Trump wrote, according to g1.
The president said the new rate will apply to "all cars, trucks, big and small, auto parts and steel", while goods made in the United States will be exempt: "Produce in the U.S. and there will be no tariffs". He added that Canadians are "among the worst nations in the world to negotiate with", wrote that "we don't need Canada, they need us" and claimed that 95% of Canada's business is done with the United States.
The announcement raises tension that began at the end of last week. On Tuesday (18), Trump had suspended the 50% tariffs for three days, citing a preliminary understanding, and Canadian Prime Minister Mark Carney confirmed "substantial progress" in the talks. Negotiations collapsed on Friday (21), however, and the U.S. tariffs took effect at 12:01 a.m. Saturday (22), Washington time, on about $20 billion worth of Canadian goods. In response, Carney announced "dollar for dollar" retaliation starting September 8, with levies on steel, dairy, appliances and electronics, according to BBC Brasil.
Carney rejected what he called a "bad deal" and said the United States "asked for too much and offered too little", including clauses that would limit Canada's ability to sign trade agreements with other partners. "You are at war when you are attacked. We were attacked", he said on Saturday, calling the U.S. tariffs a "miscalculation" meant to "hurt and divide" Canadians. On Monday, the prime minister said he was not surprised by the new threat and that a mutually beneficial deal is still possible. In Washington, Transportation Secretary Sean Duffy told Fox News it is "unwise" of Canada to think it could win a trade war against Trump.
Ontario threatens to cut power and minerals
Also on Monday, Ontario Premier Doug Ford threatened to cut electricity and critical mineral supplies to the United States if the dispute worsens, in an interview with the Associated Press carried by CNN Brasil. "Everything is on the table", Ford said, citing Canada's high-quality nickel and refined uranium and suggesting oil and potash could also be used as leverage. According to him, Trump "declared war on his closest friend and ally" and underestimates Canadians' willingness to endure economic pain: "Everyone here is ready for an economic war". Ford had already used electricity as pressure earlier in the dispute, when Ontario imposed a 25% surcharge on power exported to Michigan, Minnesota and New York. He said former president Ronald Reagan, a free-trade advocate, would be "disgusted" by Trump's tariff policy, but argued Canada should keep negotiating: "I never believe in leaving the table".
According to BBC Brasil, Canada sends about 70% of its exports to the United States, and states such as Michigan, Kentucky, Indiana and Ohio are among the most exposed to the dispute. A Leger poll found that 56% of Canadians want the government to hold a firm stance, with no further concessions. A consumer boycott has already cost the U.S. about $2.35 billion in travel revenue last year, and American wine exports to Canada fell 78% after provinces pulled American alcohol from store shelves. The BBC report also notes that Canada faces a dilemma similar to Brazil's, a country hit by U.S. tariffs of up to 37.5%: the Brazilian government is weighing the use of its economic reciprocity law and has opened consultations against the measure at the World Trade Organization (WTO).