“On January First, 2027, Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50 per cent,” Trump said in a post on his Truth Social platform.
The current US tariff on Canadian automobiles is 25pc on non-US content, while imported steel generally faces a 50pc duty.
Trump’s latest threat came after the United States and Canada failed to reach an agreement last week to prevent new 50pc US tariffs on selected Canadian goods. The duties took effect on Saturday.
Canadian Prime Minister Mark Carney responded by announcing retaliatory tariffs on US products, including steel, dairy, agricultural equipment, pulp and paper, and electronics. The measures are scheduled to take effect on September 8.
The White House has accused Canada of “discriminatory treatment” of US alcohol, automobile and dairy products in imposing its tariffs.
Washington and Ottawa held intensive negotiations last week, but talks between Canadian negotiator Dominic LeBlanc and US Trade Representative Jamieson Greer failed to produce an agreement.
The latest US duties affect around 5.5pc of Canadian goods entering the United States, worth approximately $20 billion, covering products ranging from hockey sticks to cement.
Trump on Monday accused Canada of exploiting the United States for years and argued that Washington did not need its northern neighbour.
US officials had previously offered to reduce some tariffs as part of negotiations, including cutting the 25pc auto tariff and lowering steel duties on most Canadian steel from 50pc to 25pc.
Carney, however, suspended trade talks with Washington after the latest negotiations failed. US officials said on Monday that no further negotiations had yet been scheduled.
The two countries also face broader negotiations over the future of the US-Mexico-Canada Agreement, or USMCA, which governs much of their trade.
Trump’s repeated suggestions that Canada could become the 51st US state have further strained relations and provoked strong criticism in Canada.
