Kathmandu— Former U.S. President Donald Trump has announced a 50% tariff on all cars, trucks, automotive parts, and steel imported from Canada, set to take effect January 1, 2027. The move, revealed Monday via a post on Truth Social, follows the collapse of trade negotiations between the two countries last week and represents a doubling of the existing 25% tariff on Canadian auto imports. Trump accused Canada of unfair trade practices and claimed a $60 billion trade deficit with the U.S., while urging companies to build facilities within American borders to avoid the tariffs.

Escalating Trade Dispute

The announcement follows the implementation of another round of 50% US tariffs on approximately $20 billion worth of Canadian imports, including wine, cement, plywood, clothing and hockey equipment, which took effect two days prior. Negotiations between the U.S. and Canada had been ongoing for months in an attempt to avert a trade war, but talks broke down Friday with both sides blaming each other for making last-minute changes to a proposed agreement.

Canadian Response

Canadian Prime Minister Mark Carney has condemned the US tariffs as “unfair” and “uneconomic,” vowing to implement retaliatory measures. Ottawa plans to match Washington’s tariffs “dollar for dollar”, targeting American goods such as steel, dairy products, appliances, and electronics starting September 8. These countermeasures are intended to protect Canadian workers and businesses from the impact of the US tariffs.

History of Trade Tensions

Trade tensions between the U.S. and Canada have been a recurring issue, dating back to Trump’s initial term in office. After returning to office last year, Trump initiated a broad tariff campaign against several major trade partners, including Canada, Mexico, China, the European Union, and Japan. He has consistently accused these nations of unfairly benefiting from access to the U.S. market.

The implementation of these tariffs is expected to further strain relations between the two countries and could lead to broader economic consequences for both economies.

(With inputs from RT)

Originally published on abcnews.com.np.