Trump threatens 50% tariffs on all cars and trucks from Canada

President Donald Trump sought to boost pressure on Canada on Monday, warning that US tariffs on all cars, trucks and automotive parts from the U.S.’ northern neighbor would be increased to 50% starting January 1 after trade talks collapsed over the weekend .

T he trade deal on the table would have cut the top-line tariff rate on Canadian cars and light-duty trucks from 25% to 15% and the tariffs on aluminum and steel from 50% to 25% but the deal collapsed on Friday over a number of points of contention including whether the U.S. tariff relief would have applied to medium or heavy-duty trucks.

“Build in the US and there are ZERO TARIFFS.

Canada will be treated like a State no longer!” Trump wrote.

“On Trade, and in other ways, also, they are among the worst Nations in the World to deal with.

They feel entitled, and yet, WE DON’T NEED CANADA, THEY NEED US! ” Trump said.

C anada has consistently been one of the top two U.S. trading partners and last year, US goods and services trade with Canada totaled $872.3 billion, down 4.6%.

Canada exported over three-quarters of its goods to the US and imported almost half of its goods from the U.S.

U .S. auto production is heavily integrated with Canada and Mexico and the tariffs — depending on the specifics — could have drastic impacts on American production.

Flavio Volpe, the president of Canada’s Automotive Parts Manufacturers’ Association, said, “A threatened US tariff on Canadian auto parts will be paid by (the) US auto assembly.

Without those specific parts, auto assembly throughout the US would halt.” The White House did not immediately respond to a request for comment seeking more details on the threatened tariffs.

Representatives for the Canadian government also did not immediately respond to a request for comment.

Canada will impose tariffs on some US goods starting September 8 in retaliation for 50% ​levies ordered by Trump on $20 billion in Canadian products.

“You’re at war when you get attacked.