Donald Trump has threatened to impose a 50% tariff on Canadian cars, automotive components and steel from next year onwards, after trade negotiations between the traditionally close allies fell apart last week.
In a post on Truth Social on Monday, Mr Trump accused Ottawa of having "ripped off" the US "for years", and said previously scheduled US tariffs on assorted Canadian products had taken effect following the breakdown in discussions. Canada has promised retaliation.
Trump's tariff threat
Mr Trump wrote: "Their ridiculously high tariffs on our Farmers and farm products has made life impossible for these great American Patriots, and has long created a 60 Billion Dollar Deficit between our two Countries. Not sustainable, and NOT ANYMORE!"
He added: "On January 1, 2027, Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50%. Build in the U.S. and there are ZERO TARIFFS. Canada will be treated like a State no longer!"
His message continued: "On Trade, and in other ways, also, they are among the worst Nations in the World to deal with. They feel entitled, and yet, WE DON'T NEED CANADA, THEY NEED US! They do 95% of their business with the U.S., with us, the exact opposite! Thank you for your attention to this matter! President DONALD J. TRUMP."
Tariffs in effect
Tariffs, levies placed on goods brought in from abroad, have formed a cornerstone of Mr Trump's trade strategy. According to the Office of the US Trade Representative, the tariffs cover roughly $20 billion worth of Canadian goods entering the United States.
The newly imposed duties are anticipated to impact a broad spectrum of products, ranging from hockey sticks and certain construction materials to alcoholic drinks and selected garments, with the potential to drive up costs for both businesses and consumers.
Carney's response
On Saturday, Canadian Prime Minister Mark Carney branded the latest round of US tariffs on Canada a "miscalculation", stating that the levies were intended to "hurt and divide us", following the breakdown of trade negotiations late on Friday.
Mr Carney attributed the collapse of talks to what he characterised as the Trump administration's "uneconomic" and "unfair" demands, contending that they ultimately derailed any prospect of reaching a settlement.
Addressing Canadians in a Saturday morning speech, he declared: "They asked too much and they offered too little. In recent days, the United States proposed new terms that were uneconomic, unfair, and undermined the net benefits for Canada, and called into question the reliability of any deal. In short, they asked too much, and they offered too little."
