Trump Escalates Trade War with Threat of 50% Tariffs on Canadian Vehicles
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Ottawa: US President Donald Trump has threatened to raise tariffs on Canadian cars, trucks, and automotive parts from 25 per cent to 50 per cent starting 1 January, dramatically escalating the ongoing trade dispute between the neighbouring nations.
The announcement follows the collapse of high-stakes trade negotiations late last week, which ended after both countries accused each other of introducing unacceptable last-minute demands. Canadian Prime Minister Mark Carney condemned the latest threat, accusing the US administration of attempting to dismantle Canada's automotive sector. Carney reaffirmed that Canada remains open to talks only if Washington demonstrates the right attitude, while declaring that Ottawa is prepared to respond with dollar-for-dollar reciprocal tariffs on American goods.
In response to the crisis, Canadian officials announced an emergency multi-ministry news conference to unveil measures aimed at protecting domestic workers and businesses. Meanwhile, Ontario Premier Doug Ford sharply criticized the US administration, suggesting Canada leverage its vast exports of crude oil, natural gas, and critical minerals in retaliation, prompting a sharp counter-warning from Trump on social media.
Pic Credit ; AFP
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