Washington, August 24, 2026 (Yes Punjab News)
US President Donald Trump on Monday announced plans to raise tariffs on Canadian cars, trucks, automotive parts and steel to 50 per cent from January 1, 2027, escalating an already strained trade relationship between the two neighbouring countries.
Trump made the announcement in a post on Truth Social, accusing Canada of imposing high tariffs on US agricultural products and alleging that the existing trade relationship had been unfair to American businesses and farmers.
“Canada has been ripping off the United States of America for years,” Trump said, while criticising what he described as “ridiculously high tariffs” on American farm products.
“On January First, 2027, Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50 per cent,” he said.
Trump also offered an incentive to companies to shift manufacturing to the United States, saying that products built in the US would face zero tariffs.
The announcement followed the collapse of US-Canada trade negotiations last week. The latest move would further increase pressure on Canada’s highly integrated automotive industry and could disrupt supply chains that span both countries.
Trump also adopted a sharply critical tone towards Ottawa, saying Canada would no longer receive preferential treatment from Washington.
“Canada will be treated like a State no longer!” he said, adding that the US did not need Canada and that Canada was more dependent on the American market.
Trump claimed that Canada conducts 95 per cent of its business with the US. His remarks came as Canada prepared retaliatory measures against US tariffs, further deepening the trade dispute.
The proposed tariffs are the latest escalation in a rapidly deteriorating trade relationship between the two countries, with both sides facing pressure to protect domestic industries while avoiding disruption to deeply integrated North American supply chains.
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