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Trump threatens new 50% tariffs on Canadian cars

Aug 24, 2026, 6:30pm EDT
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A Canadian steel plant
Carlos Osorio/Reuters

US President Donald Trump threatened new 50% tariffs on Canadian cars and trucks on Monday, escalating the two countries’ all-out trade war.

Canadian Prime Minister Mark Carney has threatened to retaliate with counter-tariffs, saying the latest negotiations made clear that Trump wants to destroy Canada’s steel, aluminum, and auto industries.

Canadians overwhelmingly supported Ottawa’s decision to abandon talks; nearly two-thirds believe the trade crisis will make Canada stronger by becoming less dependent on Washington. Acknowledging the challenges in targeting a “much bigger economy” like the US, Carney said, “Everything is on the table.”

A Canadian essayist noted that while Carney’s “decision to tough it out is iconically Canadian,” his open defiance of US aggression “will resonate far beyond Canada’s border.”

A chart of Canada’s exports by country in 2025
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