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Good Morning America ShopGMA Interest Successfully Added We'll notify you here with news about Turn on desktop notifications for breaking stories about interest? Off On Stream on Trump says he'll impose new 50% tariffs on Canadian cars and steel in January, escalating trade war The move comes days after trade talks broke down between the U.S. and Canada.
President Donald Trump on Monday said in a social media post that he will ratchet up tariffs on Canada-made cars and auto parts in January, escalating a trade war between the United States and Canada .
The moves comes after negotiations between Canada and the U.S. broke down over the weekend. A fresh round of 50% U.S. tariffs on some Canadian goods took effect on Saturday, prompting a vow from Canada to retaliate with a set of its own levies.
The latest announcement from Trump promised to double tariffs from 25% to 50% on Canadian cars and auto parts starting on Jan. 1, 2027. The elevated levy will also apply to steel and trucks, according to the president.
"On Trade, and in other ways, also, they are among the worst Nations in the World to deal with," Trump said his social media platform on Monday. "They feel entitled, and yet, WE DON’T NEED CANADA, THEY NEED US!"
It is unclear why Trump is waiting until January.
In the first half of 2026, the U.S. exported $175.8 billion in goods to Canada -- the second biggest export trading partner after Mexico -- accounting for 14% of all U.S. exports, according to the Census Bureau.
The sharp criticism arrived days after Canadian Prime Minister Mark Carney issued blistering remarks about the U.S. approach to trade negotiations. He said talks broke down after American negotiators made requests that were unfavorable to Canada.
"They asked too much and offered too little," Carney said at a Saturday press conference.
According to Carney, the 50% tariff would be applied to roughly $28 billion of Canadian goods and that Canada would match the U.S. "dollar for dollar." Canada's retaliatory tariffs would go into effect on Sept. 8 and more details will be revealed later, the prime minister said on Saturday.
Carney noted that one of the sticking points was changes by the U.S. over its levels of tariffs on automobiles that he claimed would have hurt Canada's economy over time.
He criticized the Trump administration, saying it "uses economic integration as a weapon."
This is a developing story. Please check back for updates.
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