The latest threat comes after the neighbors failed to reach a deal to avert a 50% US levy on a range of other Canadian goods. Ottawa says it plans to impose retaliatory tariffs.

US President Donald Trump said Monday he would impose a 50% tariff on Canadian automobiles, car parts and steel from January 1, 2027.

The announcement comes amid an escalating dispute between the two neighbors following the collapse of trade talks last week.

“Build in the US ⁠and ​there are ​ZERO TARIFFS. ​Canada will be ‌treated like a ​[US] State ⁠no longer!” Trump wrote on social media, using his trademark all-caps style.

“On Trade, ‌and in other ways, also, ‌they ​are among the worst Nations in the World to deal with. They feel entitled, and ​yet, WE DON’T NEED CANADA, THEY NEED US!” the US president added.

The current US tariff affecting Canadian autos stands at 25%.

Breakdown in negotiations

The two countries have blamed each other after failing to reach a trade deal late on Friday to avert US levies of 50% on a range of other Canadian products —  from hockey sticks and fishing rods to wine and dairy products. Those tariffs went into force on Saturday.

The tariffs affect $20 billion (€17 billion) worth of goods, covering about 5% of what Canada ships to the US each year.

Canadian Prime Minister Mark Carney said his country would impose retaliatory tariffs from September 8 that would cover steel, dairy, appliances, agricultural equipment, pulp and paper and electronics.

The US currently accounts for roughly 70% of Canadian exports, making Ottawa potentially more vulnerable in the standoff.

No further negotiations are currently scheduled.

Trading blame

Carney accused Washington over the weekend of using “economic integration as a weapon” and said his country had been “attacked” by the new American tariffs.

“They asked too much and offered too little,” Carney said.

US chief trade negotiator Jamieson Greer, meanwhile, said the US was compelled to act after a year of retaliation by its neighbor.

“We’ve said enough, and so we’ve taken countermeasures. Our interest is in protecting American workers and protecting American supply chains,” he said.

Canada is yet to comment on the additional tariffs announced by Trump on Monday.