US-Canada trade war escalates as Donald Trump announces 50% tariffs

WASHINGTON DC: The US-Canada trade war has escalated sharply, with US President Donald Trump on Monday announcing that tariffs on Canadian cars, trucks, automotive parts and steel imports will be raised to 50 per cent from January 2027, following the collapse of trade negotiations between Washington and Ottawa last week.

Trump announced in a post on Truth Social, accusing Canada of imposing high tariffs on American farmers and agricultural products and warning that companies manufacturing in the United States would face zero tariffs.

"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! On January First, 2027, Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50%. Build in the U.S. and there are ZERO TARIFFS. Canada will be treated like a State no longer!" Trump said in his post.

The US President further accused Canada of being among the most difficult countries to deal with in trade, arguing that Ottawa depends heavily on the American market while claiming the US does not similarly rely on Canada.

"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! They do 95% of their business with the U.S., with us, the exact opposite! Thank you for your attention to this matter!" he added.

The announcement came after trade negotiations between Washington and Ottawa broke down, with Canadian Prime Minister Mark Carney describing the US' last-minute proposed terms as "unfair" and "uneconomic". Canada has said it will respond with retaliatory tariffs on US goods. (ANI)

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