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Trump threatens 50% tariff on Canadian vehicles from 2027
BBC News··29 Aug
US President Donald Trump threatened to raise tariffs on Canadian vehicles from 25% to 50% from 1 January 2027. Bernard Yaros of Oxford Economics said dealerships absorbed past costs, but a 50% rate would feed through to consumer prices more readily. Canadian Prime Minister Mark Carney imposed retaliatory import taxes after Trump threatened further hikes.
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What It Means For You
- US buyers of Canadian-made vehicles could face higher prices if the 50% tariff takes effect in 2027.
- Carney matched US rates on steel and aluminium at 50% in the latest trade escalation.
- Yaros said higher costs could push manufacturers toward luxury SUVs and tighten cheaper new car supplies.
What's Happening
- Cars, trucks and parts are among the main goods traded across US, Canada and Mexico borders.
- Carney has also imposed import taxes on several US goods beyond the vehicle tariffs.
- Construction materials such as steel, aluminium and lumber already carried tariffs before this week.
The US Canada Tariff Timeline
- The North American neighbours have been locked in a tariff conflict since Trump returned to office.
- A 25% import tax on certain American vehicles has been in place in Canada since last year.
- Carney decided not to match Trump's 50% vehicle tariff threat so far.
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