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US to impose 50% tariffs on Canadian autos, trucks and steel starting 2027

The duties would be waived for companies that manufacture inside the United States, and the White House linked the move to a roughly $60 billion US trade deficit with Canada.

Reported · Written up by our desk · Central Banks

FXStreet reports that President Donald Trump announced an escalation of the trade fight with Canada, saying the United States will raise tariffs to 50% on all cars, trucks, automotive parts, and steel imported from Canada starting January 1, 2027.

According to the announcement posted on Truth Social, the increased duties would not apply to firms that manufacture within the United States, with Trump framing the policy as an incentive to shift production onto American soil.

Trump also cited alleged years of unfair Canadian trade practices, including steep Canadian tariffs on US farmers and farm products, and he pointed to a roughly $60 billion trade deficit between the two countries as justification for the step-up.

He further said Canada would be treated differently in the relationship, arguing the United States needs Canada less than Canada needs the United States, and he asserted that Canada conducts the overwhelming share of its trade with the US.

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