Zoe Callow Donald Trump said the United States will impose fresh tariffs on Canada and double existing tariffs on Canadian-made cars and auto parts, according to ABC News and USA Today. This follows the collapse of the latest round of talks in Washington: Canadian negotiators walked out, and Prime Minister Mark Carney accused the Trump administration of making disproportionate last-minute demands, according to France24.
Carney had already declared Canada 'at war' with Washington and locked in dollar-for-dollar retaliatory tariffs; those measures are due to take effect in early September, per France24.
Trump also said Canada wants the 'benefits' of being a US state without the obligations, according to the BBC. In response, Ontario's premier threatened to cut off electricity and mineral exports to the United States, according to Spectrum News.
Canada and the US run one of the world's most integrated supply chains, especially in autos, where parts often cross the border several times before a vehicle is finished. A tariff wall on that trade raises costs for manufacturers on both sides, while Ontario's threat to curb electricity and mineral flows would hit US industries and grids that depend on Canadian supply.
