US‑Canada Trade War Escalates as Trump Threatens 50% Tariffs on Autos

President Donald Trump has announced a 50% tariff on Canadian cars, trucks, and auto parts, effective 1 January, after trade talks collapsed late last week.

The American move follows a 25% tariff that had been in place and was aimed at pressuring Canada to remove a clause that would limit its ability to sign trade deals with other countries.

Canada’s federal government, led by Prime Minister Mark Carney, has pledged to retaliate with equal‑sized tariffs on key U.S. goods from 8 September and is calling for a new round of talks with the U.S. “if the other side comes with the right attitude.”

Ontario’s premier, Doug Ford, provoked Trump with a “kiss my ass” remark and suggested that Canada might charge extra for U.S. oil, gas and critical minerals.

Business owners on both sides warn that the sudden tariff hike could raise prices of imported parts by up to 50%, threatening the Canadian auto industry and U.S. accessory markets.

With the U.S.-Mexico-Canada Agreement (USMCA) at risk, analysts say the trade spat could lead to a prolonged recession for Canada and shift North American trade dynamics.

To read the full BBC interview, visit: BBC Article