Trump Threatens 50% Tariff on Canadian Vehicles — SkimNews
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- Donald Trump threatened to raise US tariffs on Canadian cars, trucks, and auto parts from 25% to 50% effective January 1, after trade talks between the two countries collapsed late Friday night.
- Canada walked away from negotiations moments before a US-imposed deadline that would have added a 50% levy on nearly $20bn (C$28bn) of Canadian imports, with each side accusing the other of introducing unacceptable last-minute demands.
- Prime Minister Mark Carney declared Canada would impose reciprocal "dollar for dollar" tariffs on US goods and announced C$11bn ($7.95bn) in funding to build six icebreakers at a Quebec shipyard as part of a trade-diversification push.
- Ontario Premier Doug Ford told Trump to "kiss my ass" and suggested Canada charge the US extra for oil, gas, electricity, and critical minerals — prompting Trump to fire back on Truth Social calling Ford's comments "bluster."
- Canada accounts for 60% of total US crude oil imports and nearly 100% of US natural gas exports, according to Canadian government data cited in the report.
- The USMCA trade pact, which underpins $1.6tn in North American trade, faces growing uncertainty as both Canada and Mexico seek a 16-year extension but the US has refused to renew in its current form, with Oxford Economics warning an unraveling could push Canada into recession.
- Small businesses on both sides are already bracing for impact: Portland retailers told the BBC their Canadian-made pillows could jump about 50% to $90, and Canadian retaliatory tariffs are set to take effect September 8.
Why it matters: The collapse of talks means nearly $20bn in Canadian goods now face a 50% US levy, with Canada set to retaliate dollar-for-dollar on September 8 — a direct hit to integrated North American supply chains. With Canada supplying 60% of US crude oil and virtually all US natural gas imports, the dispute hands Canada leverage that could reshape continental energy pricing. Oxford Economics warned USMCA unraveling would push Canada into recession.
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