Trump threatens Canada with 50% auto, steel tariffs as trade dispute widens

The US-Canada trade war shows no signs of easing. Canadian negotiators walked away from talks in Washington as Prime Minister Mark Carney accused the Trump administration of making disproportionate demands at the last minute. The US now is levying 50% tariffs on 20 billion dollars of Canadian goods, with Canada's retaliatory tariffs on US goods set to take effect in early September.

The fight could have serious consequences for both countries' economies. The latest threat comes after the neighbors failed to reach a deal to avert a 50% US levy on a range of other Canadian goods. Ottawa says it plans to impose retaliatory tariffs.

The US had already announced a 50% levy on a range of Canadian goods after trade talks collapsed last week, prompting Canada to pledge retaliatory tariffs. President Donald Trump has sharply intensified the U.S.–Canada trade war, announcing a sweeping plan to impose 50 per cent tariffs on Canadian cars, trucks, auto parts and steel beginning Jan. In a post on Truth Social, Trump accused Canada of “ripping off” the United States for years, claiming — without providing evidence — that Canadian tariffs have created a $60‑billion trade deficit and harmed American farmers.

He said Canada “will be treated like a State no longer,” adding that the U.S. “doesn’t need Canada” and urging companies to “Build in the U.S.” to avoid tariffs. The comments on Truth Social come just days after trade talks between the two countries collapsed and Ottawa confirmed it will retaliate dollar‑for‑dollar beginning next month.

The latest threat follows a week of rapid deterioration in cross‑border relations. Prime Minister Mark Carney announced Saturday that negotiations with Washington had failed, saying the U.S. demanded concessions that would “permanently disadvantage” Canadian industries.

Canada’s premiers have urged unity in responding to the crisis. Several, including Ontario Premier Doug Ford, have backed Carney’s decision to walk away from what they called a “bad deal,” arguing that Canada must not accept terms that undermine auto manufacturing, steel production and agriculture. Premiers have also called for federal support to help workers and businesses absorb the shock of rising costs and supply‑chain disruptions.