US President Donald Trump has escalated the growing trade dispute with Canada by threatening to double tariffs on Canadian automobiles and auto parts. He announced that duties on Canadian-made cars, trucks and components could rise from 25% to 50% starting 1 January.
The latest threat comes after trade negotiations between the United States and Canada broke down late last week. Both countries blamed each other for making excessive demands during the final stages of the discussions, bringing hopes of a new trade agreement to an abrupt end.
Canadian Prime Minister Mark Carney described Trump’s tariff warning as expected and accused him of attempting to weaken and ultimately destroy Canada’s automobile industry. Carney maintained that Canada remains willing to return to negotiations, but only if Washington approaches the discussions constructively and with the right attitude.
Tensions increased further after officials from both countries confirmed that trade negotiations had been suspended without a definite date for their resumption. Canada withdrew from the talks shortly before a US deadline that would have imposed a 50% tariff on almost $20 billion worth of Canadian imports.
The breakdown represents a sharp reversal from the more positive atmosphere earlier in the week, when Canadian and US officials had expressed confidence that they could reach a new trade agreement.
PRESS UPDATE