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Trump threatens 50% tariffs on all cars and trucks amid Canada trade spat

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By David Shepardson and ‌Daphne Psaledakis

WASHINGTON, Aug 24 (Reuters) - U.S. tariffs on ​all cars and trucks, automotive parts and steel will be increased to 50% ⁠starting January 1, 2027, President Donald Trump said in a social post on Monday after trade talks with Canada collapsed over ​the weekend.

"Build in the U.S. 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!"

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.

The two countries ⁠failed to reach a trade deal late ‌on Friday, with each side blaming ​the other as Canada readied tariffs on some U.S. goods in retaliation for 50% levies ordered by Trump on other Canadian ‌products.

Major automakers did not immediately comment on Trump's ​announcement.

But auto executives, speaking ⁠to Reuters on the condition of anonymity, raised skepticism ‌about Trump's threat, noting the ⁠president has previously announced large tariffs that never materialized and that any tariff of that size would likely spark a massive Canadian ​retaliation.

They also noted January ‌was months away following November's midterm elections and that Trump's threat ⁠could aimed at restarting talks.

(Reporting ​by Katharine Jackson, Daphne Psaledakis and David Shepardson; editing by ​Susan Heavey and Chizu Nomiyama)

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