Members of Canada’s automotive industry are expressing a range of emotions in response to U.S. President Donald Trump’s latest threats to double certain American tariffs on vehicles, auto parts, and steel from Canada. Following Canada’s rejection of a U.S. trade proposal, Trump announced on Truth Social that tariffs would increase to 50% from current levels starting January 1, 2027.
Lucas Malinowski, the CEO of Global Automakers of Canada, expressed uncertainty about the seriousness of Trump’s statement. He mentioned that similar outbursts in the past did not result in changes in tariff and trade policies, so they are waiting to see if this threat materializes. The industry group represents major international automakers such as Toyota, Volkswagen, BMW, Honda, Hyundai, Nissan, and Mercedes-Benz.
Trump’s tariff escalation is the latest development in the Canada-U.S. trade conflict since negotiations collapsed prior to the deadline to avoid significant U.S. tariffs on Canadian goods. Prime Minister Mark Carney pledged to match American tariffs “dollar for dollar” after September 8 on products like steel, dairy, appliances, and agricultural equipment.
In response to Trump’s criticism of Canada, Flavio Volpe, president of the Automotive Parts Manufacturers’ Association, clarified that the increased tariffs would impact the U.S. auto industry, not Canadians. He highlighted that the importer of record is responsible for paying tariffs, emphasizing that U.S. auto assembly would bear the brunt of the higher tariffs.
The ongoing trade tensions have already affected the auto industry, with significant impacts on U.S. exports to Canada. Malinowski noted a 22% decline amounting to $7 billion in the past year. He estimated that tariffs and trade disruptions have added $110 billion in costs to North America’s auto sector over the last 18 months.
Ontario Premier Doug Ford criticized Trump’s tariff threats, calling him a bully and expressing determination to stand up to the U.S. president. Ford emphasized the need to push back against such actions and predicted that Trump would face consequences for his behavior.