50% tariff on Canadian steel, cars from January 2027: Trump
What's the story
US President Donald Trump has announced plans to impose a hefty 50% tariff on Canadian cars, trucks, automotive parts, and steel. The new trade measures will come into effect from January 1, 2027. The decision comes after Canada announced its own retaliatory measures against American goods in response to Washington's recent trade actions.
Accusations
Canada has been ripping off the US: Trump
In a post on Truth Social, Trump accused Canada of taking advantage of trade with the US and criticized its tariffs on American farm products.
He said, "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."
Manufacturing push
'Build in the US and there are 0 tariffs'
Trump also urged companies to manufacture products in the US, promising them zero tariffs.
He wrote, "Build in the US and there are ZERO TARIFFS."
The President further claimed that Canada relies heavily on the American market, saying, "They feel entitled, and yet, WE DON'T NEED CANADA, THEY NEED US!"
Retaliation strategy
Canada to impose dollar-for-dollar tariffs on American goods
In response to the latest US tariffs, Canadian Prime Minister Mark Carney has said Ottawa will impose dollar-for-dollar tariffs on American goods from September 8.
The move comes after Washington's introduction of new 50% tariffs covering some $20 billion worth of Canadian exports.
Canada's countermeasures are likely to target products such as American steel, dairy, electronics, and other goods.