Trump Escalates Canada Trade Fight as New Tariff Risks Hit U.S. Businesses
- Trump threatens 50% tariffs on Canadian cars, trucks, and auto parts from January 1, 2027.
- Canada will apply counter-tariffs on C$27.6 billion of U.S. goods from September 8.
- U.S.-Canada goods and services trade totaled an estimated $872.3 billion in 2025.
U.S.-Canada trade tensions have entered a sharper phase after President Donald Trump threatened wider tariffs on Canadian vehicles. Washington already imposed new duties after recent negotiations failed to produce an agreement. Ottawa has now prepared counter-tariffs, while companies face another period of uncertainty across the border.
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