US President Donald Trump has threatened to impose tariffs of 50-100% on Canadian cars, saying Canada has “stolen” the American auto industry.
“If we don’t make a deal, we’re going to impose huge tariffs on cars. They could be 50% or 100%, because we want cars made in Detroit,” Trump said in an interview with Fox News on February 10.
Such measures would violate decades of trade agreements, including NAFTA and the USMCA, that have regulated the auto industry between the US and Canada. The USMCA, negotiated under Trump, has already tightened requirements for the origin of cars and components.
In addition, Trump imposed a 25% tariff on steel and aluminum imports without exceptions, ending exemptions for Canada. According to him, this will close “loopholes” that China and other countries have exploited.
Canadian Prime Minister Justin Trudeau called the tariffs "unacceptable" and intends to convince the United States that they are harmful to both countries.
Trump had previously threatened 25% tariffs on Canadian goods, but the parties agreed to a 30-day reprieve. In response, Canada promised to tighten the fight against fentanyl, create a joint strike force with the United States, and allocate $200 million to combat organized crime.