Trump says he'll impose new tariffs on Canada in January

Trump earlier said he'd impose a 50% tariff on Canadian cars, steel in January.

Canada on Tuesday announced retaliatory tariffs as high as 50% on hundreds of United States products, including some steel and aluminum goods, furniture and clothing, a senior Canadian government official told ABC News.

The levies, which take effect on Sept. 8, are set to escalate a trade war that erupted over the weekend after official negotiations collapsed and a fresh round of U.S. levies took hold.

"This is an unprecedented challenge imposed on Canada, but Canada will meet the moment," Canadian Finance Minister François-Philippe Champagne said at a press conference in Ottawa, Ontario, on Tuesday.

Canada's levies will match U.S. tariffs "dollar for dollar, rate for rate," Champagne said, adding that the retaliatory measure would target $27.6 billion worth of U.S. goods. That figure amounts to about 8% of total U.S. exports to Canada, according to U.S. Census Bureau data for 2025.

The Canadian tariffs will focus on many products included in U.S. levies, among them paper and dairy, the senior official added.

The move comes after President Donald Trump on Monday said in a social media post that he will ratchet up tariffs on Canada-made cars and auto parts in January.

Negotiations between Canada and the U.S. broke down over the weekend and a fresh round of 50% U.S. tariffs on some Canadian goods took effect on Saturday, prompting a vow from Canada to retaliate with a set of its own levies.

The latest announcement from Trump promised to double tariffs from 25% to 50% on Canadian cars and auto parts starting on Jan. 1, 2027. The elevated levy will also apply to steel and trucks, according to the president.

"On Trade, and in other ways, also, they are among the worst Nations in the World to deal with," Trump said his social media platform on Monday. "They feel entitled, and yet, WE DON’T NEED CANADA, THEY NEED US!"

Trump did not provide a reason for his choice to delay the tariffs until January.

In the first half of 2026, the U.S. exported $175.8 billion in goods to Canada -- the second biggest export trading partner after Mexico -- accounting for 14% of all U.S. exports, according to the Census Bureau.

The sharp criticism arrived days after Canadian Prime Minister Mark Carney issued blistering remarks about the U.S. approach to trade negotiations. He said talks broke down after American negotiators made requests that were unfavorable to Canada.

"They asked too much and offered too little," Carney said at a Saturday press conference.

Carney noted that one of the sticking points was changes by the U.S. over its levels of tariffs on automobiles that he claimed would have hurt Canada's economy over time.

He criticized the Trump administration, saying it "uses economic integration as a weapon."

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