Trump said Monday he'll raise the Section 232 tariff on Canadian cars and trucks from 25% to 50% on January 1, 2027, and apply the duty to auto parts as well, ending a carve-out that has kept USMCA-compliant parts tariff-free. That lands three days after talks broke down and the US hit $20B of Canadian goods with 50% duties. Prime Minister Mark Carney said the threat didn't surprise him, since Ottawa had already gathered in the talks that Washington wants to “destroy” Canada's biggest industries, and he pointed to US autoworkers whose plants depend on Canadian buyers. Lucas Malinowski of the Global Automakers of Canada called doubling the rate devastating, though he doubts the parts expansion happens, because it would raise input costs for American-built cars, per The Logic.
