US President Donald Trump on August 24 (local time) announced new 50% tariffs on cars, trucks, auto parts, and steel imported from Canada. This is the latest move in an escalating trade dispute between the two neighboring countries with a long-standing close economic relationship.
On Truth Social, Trump wrote that Canada has "ripped off" the US "for years" and accused the country of imposing tariffs on American farmers. He declared: "In trade and many other areas, they are among the worst countries to deal with in the world. They feel entitled, but WE DON'T NEED CANADA, THEY NEED US! They do 95% of their business with the US, with us, quite the opposite!"
Reacting to the announcement, Canadian Prime Minister Mark Carney said the move came as no surprise. Speaking in Quebec, Carney said: "It's no surprise that the US is taking some retaliatory measures in response to our reaction to their unreasonable tariffs, which are piling on top of other unreasonable tariffs."
Carney pointed out: "But what is that message to workers in Michigan, Ohio, Kentucky, Alabama—who depend on Canadian demand? We are their biggest customer for cars, bigger than the European Union, Japan, South Korea, and many others combined, as well as the United Kingdom."
The Canadian prime minister stressed that his country is ready to negotiate "when the Americans sit down at the table first with the proper attitude toward our industry and a genuine partnership."
Trump's announcement came after a potential deal to reduce tariffs on cars and other materials collapsed over the weekend. Earlier, Trump had imposed 50% tariffs on $20 billion worth of Canadian exports, including hockey equipment and electronics. On August 23, Carney rejected the latest agreement between the two countries, saying the US "demands too much and offers too little," while vowing to respond to US tariffs "dollar for dollar."
Canada and the US are longtime partners, with bilateral trade of about $909 billion, according to the Office of the US Trade Representative. However, Trump's second presidency and its hard-line trade policies have closed the era of "deep relations" between the two countries, Carney declared last year and pledged to fight the US president's sweeping tariffs.
