The Trump administration imposed 50% tariffs on Canadian goods after marathon trade talks collapse. FOX Business’ Lydia Hu reports on Canada’s retaliatory measures and Prime Minister Mark Carney’s response to the economic escalation.
President Donald Trump threatened Monday to impose 50% tariffs on Canadian-made vehicles, auto parts and steel beginning in January 2027, accusing Canada of “ripping off” the United States for years.
Trump issued the warning in a Truth Social post, writing, “WE DON’T NEED CANADA, THEY NEED US!”
“Canada has been ripping off the United States of America for years. 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!” the president’s post read.
CANADA’S CARNEY SAYS US MADE LAST-MINUTE ‘POWER PLAY’ AS TRADE TALKS COLLAPSE; RETALIATORY TARIFFS IN PLACE
President Donald Trump speaks during a campaign rally for U.S. Senator Darline Graham, R-S.C., at the Myrtle Beach Convention Center in Myrtle Beach, South Carolina, on Aug. 21, 2026. (REUTERS/Evan Vucci / Reuters Photos)
Trump said the 50% rate would apply to “all” Canadian cars and trucks, both “large and small,” as well as automotive parts and steel, beginning Jan. 1, 2027.
“Build in the U.S. and there are ZERO TARIFFS,” Trump wrote. “Canada will be treated like a State no longer!”
“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!” Trump continued. “They do 95% of their business with the U.S., with us, the exact opposite!”
Trump’s new tariff threat follows the collapse of trade talks between Washington and Ottawa after Canadian Prime Minister Mark Carney suspended negotiations with the U.S. and ordered Canada’s trade team back to Ottawa.
Canadian Prime Minister Mark Carney speaks during a news conference on U.S.-Canada trade negotiations. ( Dave Chan / AFP via Getty Images / Getty Images)
Carney’s move came as a separate round of 50% U.S. tariffs on roughly $20 billion worth of Canadian imports took effect early Saturday.
US-CANADA TRADE NEGOTIATIONS SUSPENDED, CARNEY VOWS DOLLAR-FOR-DOLLAR RETALIATION AGAINST TRUMP’S 50% TARIFFS
The prime minister on Saturday accused Washington of making a last-minute “power play,” saying the U.S. sought to restrict Canada’s ability to negotiate trade agreements with other countries.
President Donald Trump greets Canada’s Prime Minister Mark Carney during a world leaders’ summit on ending the Gaza war on Oct. 13, 2025, in Sharm El-Sheikh, Egypt. (Evan Vucci – Pool / Getty Images / Getty Images)
According to Carney, trade talks broke down after the U.S. introduced new demands involving Canada’s other trading relationships, its auto sector and protections for Canadian culture and the French language.
“In short, they asked too much, and they offered too little,” Carney said.
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Carney previously said Ottawa plans to match the U.S. tariffs “dollar for dollar,” with the levies targeting multiple sectors, including steel, dairy, appliances, agricultural equipment, pulp and paper and electronics. The duties are set to take effect the Tuesday after Labor Day, Sept. 8.
Fox News Digital’s Michael Sinkewicz and Fox Business’ Brittany Miller contributed to this report.
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