The announcement marks a new escalation in the trade war, after Canada broke off trade negotiations with the U.S.
On Monday, U.S. President Donald Trump announced that he will impose a 50% tariff on vehicles and steel from Canada starting in January 2027, in a new escalation of his trade war.
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Canada Will Retaliate for US Tariffs Starting September 8
“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!” he posted on Truth Social.
“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!”
“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!” Trump concluded.
Donald Trump Is At War With Rural America:
Tariffs+ AI data center boom = war on American farms and ranches putting US food supply at risk:
2025:
– Bankruptcies surged 46%.
– 15,000 farms gone.
– 2.51 MILLION acres of farmland lost.2026:
– More as retaliatory tariffs… pic.twitter.com/qqd12ZRqV4— Maine (@TheMaineWonk) August 22, 2026
Currently, the U.S. imposes 25% tariffs on some vehicles that do not meet the terms of the United States-Mexico-Canada Agreement (USMCA), a rate that would double and apply to all cars if the announcement is implemented next January.
In the case of Canadian steel, Washington has already imposed a 50% tariff on some products made with the metal, a levy that would cover the entire sector starting in 2027.
On Aug. 21, Canadians broke off trade negotiations, considering the conditions added by Washington in the last hours before the deadline to impose new U.S. tariffs “unacceptable,” according to Canadian Prime Minister Mark Carney.
With the talks broken off, 50% tariffs on about US$20 billion worth of Canadian products took effect at midnight Saturday. Carney pledged that Canada would match Washington’s new tariffs “dollar for dollar” starting Sept. 8.
teleSUR/ JF
Sources: EFE – X
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it’s not much of a “war”, the US will be further economically disadvantaged for destroying historic trade and diplomatic alliances while canada will benefit enormously in the short and long term from new trade partners fleeing U.S. relations.
canada has already committed to doubling their non-US imports permanently, and has new agricultural deals in place with central and south america, so even when trump chickens out, US americans will be SOL for lumber and canadian imports and unable to offload their products and agriculture permanently. 70-80% of all U.S. lumber is actually Canadian, and that faucet has been turned off because of trump.
