Trump threatens tariffs on all cars and trucks to 50% amid Canada trade spat

WASHINGTON: US tariffs on all cars and trucks, automotive parts and steel will be increased to 50 per cent starting Jan 1, 2027, President Donald Trump said in a social post on Monday (Aug 24) after trade talks with Canada collapsed."Build in the US and there are ZERO TARIFFS. Canada will be treated like a State no longer!" Trump wrote."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!"Representatives for the White House did not immediately respond to a request for comment. The two countries failed to reach a trade deal late on Friday, with each side blaming the other as Canada readied tariffs on some US goods in retaliation for 50 per cent levies ordered by Trump on other Canadian products.The White House had alleged "discriminatory treatment" by Canada against US alcohol, automobile and dairy products in rolling out the duties.Trump delayed their implementation by three days last week as Washington and Ottawa stepped up negotiations towards a trade pact.However, the steep duties took effect on Saturday after efforts to reach an agreement failed, and it hits about 5.5 per cent of Canadian goods entering the US, or some US$20 billion worth of products ranging from hockey sticks to cement.The Trump administration on Sunday warned that Canada would be "foolish" to think it could win a trade war with the US, predicting a "devastating" impact on its northern neighbour.