Trump Escalates Canada Trade War With 50% Auto, Steel Tariffs

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President Donald Trump speaks with Canadian Prime Minister Mark Carney during a working lunch with G7 and Middle East leaders in Evian-les-Bains, France, on June 16, 2026. Trump has since escalated the U.S.-Canada trade dispute, announcing 50% tariffs on Canadian cars, trucks, auto parts and steel beginning Jan. 1, 2027. (Evelyn Hockstein/Pool Photo via AP, File)
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WASHINGTON (AURN News) — President Donald Trump accused Canada of “ripping off the United States of America for years” and declared, “Canada will be treated like a State no longer!” He also announced that tariffs on Canadian cars, trucks, automotive parts and steel will rise to 50% on Jan. 1, 2027.

The announcement comes after U.S.-Canada trade negotiations collapsed late last week. The two countries had been close to an agreement that would have reduced some existing tariffs, but no final deal was reached.

On Saturday, a separate round of 50% U.S. tariffs took effect on roughly $20 billion in Canadian goods, representing about 5% of Canada’s exports to the United States. The tariffs cover a range of products, including food products, cosmetics, furniture and hockey equipment.

Less than 72 hours later, Trump escalated the dispute again, announcing that Canadian cars, trucks, automotive parts and steel would face 50% tariffs beginning Jan. 1, 2027.

Canada is not backing down. Prime Minister Mark Carney has promised to respond dollar for dollar, with Canadian retaliatory tariffs set to take effect Sept. 8. The countermeasures are expected to target U.S. steel, dairy products, appliances, agricultural equipment, pulp and paper and electronics.

Carney characterized the U.S. tariffs as an economic attack. “You’re at war when you get attacked. We got attacked,” he said.


Click play to listen to the report from AURN White House Correspondent Ebony McMorris. For more news, follow @E_N_McMorris & @aurnonline.

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