“On January First, 2027, Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50%,” Trump wrote on his Truth Social platform.
The current US tariff impacting Canadian autos stands at 25 percent for non-US content, while imported steel to the United States generally faces a 50-percent duty.
Trump’s latest threat comes after the North American neighbours failed on Friday to reach a deal to avert new 50-percent US tariffs on select Canadian goods. The duties took effect on Saturday.
Canadian Prime Minister Mark Carney has since announced retaliatory tariffs targeting the United States after walking away from what he called a “bad deal”.
The new Canadian tariffs will target US steel and dairy industries, while also covering sectors like agricultural equipment, pulp and paper, as well as electronics.
Canada’s response is set to take effect on September 8.
On Monday, Trump charged that “Canada has been ripping off the United States of America for years” and added that “we don’t need Canada, they need us”.
Meanwhile, Ontario Premier Doug Ford said in an interview with The Associated Press that former US president Ronald Reagan would be “throwing up” over Trump’s trade policies, and threatened to cut off electricity and critical minerals to the United States if the escalating trade fight worsens.
Ford said Trump has underestimated Canadians’ willingness to endure economic pain rather than give in to US pressure.
“He underestimates Canada. We’re all in,” Ford said. “Up here, we’re at a fever pitch, everyone’s in for an economic war. They know they’re going to have to sacrifice.”
Ford said Trump had “declared war, economic war against his closest friend and ally” before turning to Reagan, whose opposition to tariffs Ford previously featured in a television advertising campaign aimed at Americans.
Ford noted that Trump keeps a portrait of Reagan near his desk. Reagan was a strong advocate of free trade and repeatedly warned that protectionist tariffs could trigger retaliation and hurt American consumers and workers.
“He’d be throwing up on him from the picture if he knew what was going on, spinning around in his grave right now,” Ford said. “He should maybe take that picture off the wall and move it somewhere else. Because right now, Ronald Reagan would be disgusted with President Trump.” (AFP/AP)
