Trump Says Auto, Steel Tariffs Will Rise to 50% in 2027

President Donald Trump said Monday that tariffs on all cars, trucks, automotive parts and steel will rise to 50% on Jan. 1, 2027, in a post on Truth Social aimed at Canada.

Trump said goods built in the United States would face no tariffs.

The president accused Canada of imposing high tariffs on American farmers and agricultural products. He attributed what he described as a $60 billion deficit between the countries to their trade relationship.

Trump also claimed Canada conducts 95% of its business with the United States while American reliance on Canada is much smaller. The post did not define “business” or provide supporting data for the deficit or 95% figure.

He described Canada as among the most difficult countries to deal with and argued that it needs the United States more than the United States needs Canada.

“Canada will be treated like a State no longer,” Trump wrote.

Trade talks broke down days earlier

Trump’s announcement followed the breakdown of negotiations between the countries. Prime Minister Mark Carney said Friday in a Prime Minister’s Office statement that he suspended the talks and ordered Canada’s negotiators back to Ottawa.

Carney called last-minute changes to the proposed U.S. terms unfair and uneconomic and said they raised doubts about the reliability of any agreement.

He also said the United States would impose 50% tariffs on roughly $28 billion in Canadian goods and that Canada would match those duties dollar for dollar.

A White House proclamation set those earlier tariffs to begin at 12:01 a.m. Eastern time Saturday, Aug. 22, after postponing them from Aug. 19 while negotiations continued.

The duties covered selected imports involving alcoholic beverages, dairy products and motor vehicles. The White House said they responded to what it described as discriminatory Canadian trade measures.

The Office of the U.S. Trade Representative later blamed Canada for the failed negotiations. USTR said new Canadian demands and reversals of earlier commitments had upset the balance reached during the talks.

The agency also accused Canada of maintaining retaliatory measures, including prohibitions on certain American goods and services. Its post did not identify those goods or services.

USTR said the proposed U.S. deal had included significant tariff reductions on steel, aluminum, automobiles and lumber. Trump’s Monday announcement named automobiles and steel among the products facing planned 50% tariffs.

The supplied material does not explain the shift from those proposed reductions or how Monday’s announcement relates to the earlier tariffs.

Neither side’s supplied statement included the proposed agreement or identified the exact terms and commitments that allegedly changed.

No Canadian response to Trump’s Monday announcement was included in the supplied material. Carney’s earlier statement did not identify which U.S. goods would face Canada’s matching tariffs.