Trump says US to raise tariffs on cars, trucks, steel to 50% from Jan 1 after Canada talks fail

Trump says US to raise tariffs on cars, trucks, steel to 50% from Jan 1 after Canada talks failCanada has already said it will retaliate against US tariffs on a range of American goods. (File Photo)US President Donald Trump has threatened to sharply raise tariffs on Canadian cars, trucks, automotive parts and steel to 50 per cent from January 1, 2027, escalating a trade dispute with one of America's closest allies after talks between Washington and Ottawa collapsed. Trump announced the planned increase in a post on Truth Social on Monday, accusing Canada of imposing unfair tariffs on US farmers and saying the country had taken advantage of the country for years.Trump said the higher tariffs would apply to "all Cars, Trucks, both large and small, Automotive Parts, and Steel". He also offered a way for manufacturers to avoid the duties, saying, "Build in the US and there are ZERO TARIFFS".The announcement came days after three days of trade negotiations between the two countries ended without an agreement. Canada has already said it will retaliate against US tariffs on a range of American goods, setting the stage for a confrontation between the two neighbours whose economies are deeply intertwined.This is a developing story. It will be updated. - EndsPublished By: Sonali VermaPublished On: Aug 24, 2026 19:44 IST