Donald Trump has threatened to impose a 50% tariff on Canadian automobiles, car parts and steel starting next year as the trade rift with the US neighbour deepens. The announcement comes after trade talks between the otherwise allies and reliable trading partners collapsed last week.
Retaliation vow after talks collapse
Long-planned US tariffs on various Canadian goods went into effect after the talks broke off, and Canada has vowed to retaliate.
“Canada has been ripping off the United States of America for years,” Trump posted on social media Monday morning. Criticizing Canada’s “ridiculously high tariffs” on American farmers, Trump wrote: “Not sustainable, and NOT ANYMORE!”
Impact of the new tariff threat
The threatened 50% levy on automobiles, car parts and steel would mark a significant escalation in the trade dispute between the two neighbours.
