Trump threatens 50% tariffs on Canadian vehicles, Canada vows response

U.S. President Donald Trump announced a possible 50% tariff on automobiles and trucks imported from Canada, raising concerns of a sharp price increase for Canadian-made vehicles sold in the United States. Canadian Prime Minister Mark Carney described the threat as an attempt to "destroy" Canada’s auto industry and warned that it would also hurt American workers who rely on Canadian parts.

Canada’s finance minister, François-Philippe Champagne, said the country has the fiscal capacity and strong credit rating to support businesses affected by the tariffs and to limit job losses. He added that the United States is using economic integration as leverage rather than seeking a mutually beneficial arrangement.

Small-business owners on both sides of the border reported immediate impacts. In Portland, Oregon, a retailer that sells pillows made by a Montreal firm said the new duties could raise the retail price from $59 to as much as $90, forcing the shop to consider keeping prices unchanged despite higher costs. In Toronto, a menswear brand warned that a 50% tariff on shipments to the U.S. could force some orders to be cancelled and threaten the viability of smaller retailers.

Canadian provincial leaders expressed support for Carney’s stance, while public opinion polls show a majority of Canadians backing the prime minister’s approach to the dispute. The United States, meanwhile, has accused Canada of unreasonable demands and cited language-labeling rules in Quebec as a point of contention.

Both governments indicated that further negotiations are possible, but Carney said Canada will return to the table only if the United States does so with a “true partnership” attitude and respects Canadian sovereignty.