US President Trump Announces 50% Tariffs on Canadian Auto and Steel Imports Effective Jan. 1, 2027

Key facts

• On August 24, 2026, US President Donald Trump announced a 50% tariff on Canadian automobiles, automotive parts, and steel, effective Jan. 1, 2027.
• The tariff was announced after US-Canada trade negotiations collapsed.
• Vehicles built in the United States are not subject to the newly announced tariffs.
• Non-US automobiles and parts currently face a 25% tariff, while Canadian steel already faces a 50% tariff.
• The US imposed the tariffs under Section 338 of the Tariff Act of 1930.
• Canada's planned retaliatory tariffs on US goods such as steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics are set to take effect September 8, 2026.
• Canada imposes a 25% tariff on US motor vehicles that do not qualify for duty-free treatment under the United States-Mexico-Canada Agreement (USMCA).
• The new tariffs may affect about 5% of Canada's exports to the US and could be passed on to US consumers through higher prices.