Trump threatens 50% tariffs on all cars and trucks amid Canada trade spat

President Trump announced a 50% increase in tariffs on all cars, trucks, automotive parts, and steel starting January 1, 2027, following failed trade talks with Canada. He emphasized that "Build in the U.S. and there are ZERO TARIFFS" and criticized Canada for its trade relations.

The White House and Canadian officials have not commented on the announcement. Each country blames the other for the breakdown in negotiations, with Canada preparing its own tariffs in retaliation.

Auto executives expressed skepticism about the proposed tariffs, citing Trump's history of unfulfilled tariff threats and the potential for significant Canadian retaliation. They believe the announcement might be a strategy to revive trade discussions before the upcoming elections.