WASHINGTON: US President Donald Trump said Monday that he would double tariffs on Canadian vehicles beginning next year, as the neighbouring countries spiral towards an escalating trade war. "On January First, 2027, Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50%," Trump wrote on his Truth Social platform. The current US tariff impacting Canadian autos stands at 25 per cent for non-US content, while imported steel to the United States generally faces a 50-per cent duty.
Trump's latest threat comes after the North American neighbours failed on Friday to reach a deal to avert new 50-per cent US tariffs on select Canadian goods. The duties took effect on Saturday. Canadian Prime Minister Mark Carney has since announced retaliatory tariffs targeting the United States after walking away from what he called a "bad deal."
The new Canadian tariffs will target US steel and dairy industries, while also covering sectors like agricultural equipment, pulp and paper, as well as electronics. Canada's response is set to take effect on September 8. The White House had alleged "discriminatory treatment" by Canada against US automobile and dairy products in rolling out the 50-per cent tariffs. Trump delayed their implementation by three days last week as Washington and Ottawa intensified talks towards a deal.
Top Canadian negotiator Dominic LeBlanc and his team were at US Trade Representative Jamieson Greer's office in Washington for hours on Thursday and Friday. However, both sides failed to reach an agreement after talks that continued late into Friday night. The latest duties hit about 5.5 per cent of Canadian goods entering the United States, or some $20 billion worth of products ranging from hockey sticks to cement.
On Monday, Trump charged that "Canada has been ripping off the United States of America for years" and added that "we don't need Canada, they need us." Greer told the New York Times on Saturday that the Trump administration had offered to eliminate a 10-per cent tariff on softwood lumber, and reduce the 25-per cent autos tariff.
Washington was also ready to cut steel tariffs from 50 per cent to 25 per cent for the majority of Canadian steel, according to Greer. Carney said in a statement late Friday that he had decided to suspend trade talks with the United States, and Greer told CBS on Monday that both sides have yet to schedule further negotiations.
Besides the latest tariffs fight, the United States and Canada also have to agree on revisions to the US-Mexico-Canada free trade agreement (USMCA) which Trump has declined to renew in its current form. Trump's threats to make Canada the 51st US state have also antagonised many Canadians. — AFP
Oman Observer is now on the WhatsApp channel. Click here
