Trump Is Now Threatening to Impose 100% Tariffs on All Canadian Vehicles

Mark
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Donald Trump is once again stirring up trouble with Canada, this time targeting its auto industry. In a recent interview, Trump claimed Canada ‘stole’ U.S. car manufacturing and floated the idea of massive tariffs—anywhere from 50% to 100%—on Canadian-made vehicles. His goal? To push more car production into Detroit.

This kind of move wouldn’t just hurt Canada—it could backfire on the U.S. too. American automakers rely heavily on Canadian parts and labor, a relationship that dates back to the 1965 Auto Pact.

Today, cars and parts cross the U.S.-Canada border multiple times before they even reach a dealership. If Trump follows through, it could mean higher prices, job losses, and chaos for both countries.

Industry experts aren’t mincing words. Tu Nguyen, an economist at RSM Canada, compared Trump’s idea to ‘cutting off one’s nose to spite one’s face,’ pointing out that the North American auto industry is deeply connected.

Flavio Volpe, head of the Automotive Parts Manufacturers Association, warned that such a tariff could completely shut down production at U.S. car factories.

Then there’s Brian Kingston from the Canadian Vehicle Manufacturers Association, who says this kind of tariff would bring nothing but pain—job cuts, price hikes, and major disruptions. Analysts estimate that new car prices in the U.S. could jump by at least $6,500 if this policy takes effect.

Trump’s threats come as the U.S.-Mexico-Canada Agreement (USMCA) is set for renegotiation in 2026. Some see this as his way of putting pressure on Canada ahead of those talks. Others believe it’s just another one of his bold claims that may never happen.

Either way, if Trump follows through, Canada isn’t likely to take it quietly. A Canadian politician has already suggested slapping 100% tariffs on U.S.-made Teslas in response. With billions of dollars and thousands of jobs on the line, this trade battle could escalate fast.

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Mark is the kind of person who gets way too excited about new software updates and can’t resist taking apart gadgets—just to see if they can put them back together. With years of experience in tech journalism and a love for all things digital, Mark writes about the stories behind the screens, from game-changing innovations to the everyday tech that keeps life running smoothly. Outside of work, they’re the go-to “tech support” for friends and family, whether it’s fixing a printer that won’t cooperate or explaining why Grandma’s laptop keeps showing pop-ups. When Mark isn’t glued to their screen, they’re probably building their dream PC, rewatching sci-fi movies for the hundredth time, or testing a gadget that promises to “change everything.” Spoiler: they’ll let you know if it actually does.