Trump Announces 50% Tariffs on All Canadian Cars, Trucks, Parts and Steel Starting Jan. 1, 2027: 'Canada Will Be Treated Like a State No Longer'

Trump wrote on Truth Social on Monday that "On Jan. 1, 2027, Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50%," adding that "Canada will be treated like a State no longer!" and that Canada "has been ripping off the United States of America for years." Vehicles built in the United States are exempt. Non-U.S. autos and parts currently face 25 percent; Canadian steel already faces 50 percent. The announcement followed the collapse of trade talks and 50 percent tariffs that took effect Saturday on hundreds of Canadian goods under Section 338 of the Tariff Act of 1930.

Setting an effective date sixteen months out converts the tariff into leverage over a negotiation rather than an immediate trade measure, while committing importers to plan around it.

Trade attorney Barry Appleton told CBS News the duty is collected from American importers, so "the first invoice usually lands in a Michigan showroom, not in Ottawa." Canada's retaliatory tariffs take effect Sept. 8.