Trump raises tariffs on Canadian steel and cars to 50 per cent
The measure will come into effect in January following the split with Carney. US car manufacturers have already made their scepticism about the new tariffs clear
from New York Marco Valsania and Luca Veronese
Aggiungi Il Sole 24 Oreai preferiti su Google
The trade war between the United States and Canada is intensifying by the day. And the tariffs imposed by these two major North American economies – once allies – are causing market tensions and further difficulties for consumers, including those in the US.
US tariffs on all cars, lorries, automotive components and steel imported from Canada will rise to 50 per cent from 1 January 2027: as announced yesterday by Donald Trump in a social media post, fuelling the escalation triggered by the breakdown of trade negotiations last weekend. This comes after he had already introduced 50 per cent tariffs on around $20 billion worth of Canadian goods: building materials, plastics, spirits, dairy products, furniture, household appliances, clothing, fishing rods and ice hockey sticks.
“Manufacture in the United States and there will be no tariffs. Canada has always been treated as if it were part of the US, but that will no longer be the case,” Trump wrote. “Canada,” added the US president, “is one of the worst countries in the world to deal with. They feel entitled to everything, yet we don’t need Canada – it’s they who need us!”
Canadian Prime Minister Mark Carney had rejected a deal with the US, explaining that ‘the United States wants everything and offers nothing’. He had also announced ‘severe countermeasures, starting in September, to respond dollar for dollar to US tariffs’. Trump was not willing to wait and has already upped the ante: ‘Canada,’ the US President accused, ‘has been robbing the United States of America for years. Their absurdly high tariffs on our farmers and our agricultural products have made life impossible for these great American patriots and have long caused a $60 billion deficit between our two countries. An unsustainable situation, which we will now resolve!’
US tariffs on car imports from Canada are to be increased to 50 per cent, up from the current 25 per cent; however, this will apply only to the non-US portion of the value. Imported steel is already subject to a 50 per cent tariff. US car manufacturers, whose industry is closely integrated with that of Canada, have privately expressed “great scepticism about the new measures” and said they hope that “this threat of tariffs will not materialise either, as has happened in the past”.
