Trump Says US Tariffs on Canadian Autos, Parts and Steel to Rise to 50% Jan. 1

10:47 AM EDT, 08/24/2026 (MT Newswires) -- President Donald Trump said US tariffs on Canadian cars, trucks, auto parts and steel will rise to 50% from the start of next year, escalating trade tensions between the two countries following the collapse of bilateral talks on Friday. Trump, in a Monday Truth Social post, accused Canada of imposing unfair tariffs on US farmers and contributing to a $60 billion US trade deficit, adding this is "Not sustainable, and NOT ANYMORE!" The US president also said in the post that as of "January First, 2027, Tariffs on all [Canadian] Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50%." Late Friday, Prime Minister Mark Carney suspended talks on new specific US tariffs, saying last-minute changes to American proposals were "unfair" and "uneconomic." The US blamed Canada for the end of the talks, adding that Carney rejected terms agreed earlier in the week. As of Saturday, Canada is subject to US 50% tariffs on specific goods worth C$28 billion, including dairy products, cement and hockey equipment, in addition to existing ones on lumber and aluminum. In an attempt to lure Canadian companies to produce in the US -- in line with his presidential campaign of boosting American manufacturing jobs -- Trump also said in the post that goods built in the US would face no tariffs. Most of the US trade deficit with Canada is a result of the large amount of energy exports. Trump reiterated Monday that the US doesn't need Canada, while its northern neighbor remains heavily reliant on trade with the US. "WE DON'T NEED CANADA, THEY NEED US!" wrote Trump.