US President Donald Trump announced a major escalation in trade tensions, threatening to impose 50% tariffs on Canadian automobiles, steel, and car parts starting January 1, 2027.
The move follows the collapse of recent trade negotiations, with Trump accusing Canada of 'ripping off' the US and being the worst nation to conduct business with.
Industry analysts warn that the tariffs could devastate cross-border supply chains, with Canadian firms estimating that half of their business volume could be lost if the policy is implemented.