Adedokun Waliyu 
US President Donald Trump has announced plans to double tariffs on Canadian vehicles and automotive parts beginning in 2027, further escalating the growing trade dispute between the two North American neighbours.
Trump said tariffs on all cars, trucks, automotive parts and steel imported from Canada would be increased to 50 per cent from January 1, 2027.
The current US tariff on Canadian automobiles stands at 25 per cent for non-US content, while imported steel generally faces a 50 per cent duty.
Trump’s latest threat follows the failure of Canada and the United States to reach an agreement to prevent new 50 per cent US tariffs on selected Canadian goods. The duties took effect after negotiations between the two countries broke down.
Canadian Prime Minister Mark Carney has since announced retaliatory tariffs against the United States after rejecting what he described as a “bad deal.”
Canada’s new tariffs will target US steel and dairy products, as well as agricultural equipment, pulp and paper and electronics. The measures are expected to take effect on September 8.
The White House has accused Canada of engaging in “discriminatory treatment” against US alcohol, automobile and dairy products.
Trump had delayed the implementation of the new tariffs by three days as Washington and Ottawa intensified negotiations in an effort to reach an agreement.
Canadian negotiator Dominic LeBlanc and his team held several hours of talks with US Trade Representative Jamieson Greer’s team in Washington, but both sides failed to reach a deal.
The latest US duties affect about 5.5 per cent of Canadian goods entering the United States, worth approximately $20 billion. The affected products include items ranging from hockey sticks to cement.
Trump also accused Canada of taking advantage of the United States for years, saying Washington does not need Canada while Canada needs the US.
Greer said the Trump administration had offered to eliminate a 10 per cent tariff on Canadian softwood lumber and reduce the 25 per cent tariff on Canadian automobiles.
Washington was also prepared to reduce steel tariffs from 50 per cent to 25 per cent for most Canadian steel, according to Greer.
Carney said he had decided to suspend trade negotiations with the United States. Greer later confirmed that no new negotiations had been scheduled.
Beyond the latest tariff dispute, the two countries must also address possible revisions to the United States-Mexico-Canada Agreement, or USMCA, which governs trade among the three North American countries.
Trump has also repeatedly threatened to make Canada the 51st US state, remarks that have further strained relations and angered many Canadians.
