Tuesday

22-07-2025 Vol 19

Donald Trump’s huge threat to Canada on cars: ‘From April 2, business will shut…’


President Donald Trump on Tuesday threatened to slap high tariffs on Canadian cars in the coming month, which will lead to a “permanent shutdown” of Canada’s automobile manufacturing industry unless the country removes what he describes as “abusive” tariffs on US goods.

Tariff war: US President Donald Trump talks with Canada’s Prime Minister Justin Trudeau.(REUTERS)

“If other egregious, long-time Tariffs are not likewise dropped by Canada, I will substantially increase, on April 2nd, the Tariffs on Cars coming into the U.S. which will, essentially, permanently shut down the automobile manufacturing business in Canada,” Trump warned.

In a fiery message on Truth Social, the Republican leader announced that he would double the planned tariffs on Canadian aluminium and steel in response to Ontario’s decision to impose an electricity surcharge on three US states.

Tariffs on Canadian steel and aluminium imports would be increased by an additional 25 per cent for a total of 50 per cent duties on those commodities for the neighbour.

Notably, the tariff increase would take effect on March 12.

Canada supplies half of US aluminium imports and 20 per cent of US steel imports, as per industry consultant EY-Parthenon.

Also Read | US’ Tulsi Gabbard, Canada’s CSIS chief in India next week for security conclave

The upcoming levies, which currently allow for no exceptions, threaten to hit everything from electronics to vehicles and construction equipment.

Trump’s 51st State proposal for Canada

In his tariff announcement today, Trump once again floated the idea of Canada becoming the 51st state in the United States questioning why the country pays so little for national security.

In the same lengthy social media post, Trump said the “only thing which makes sense” is for Canada to join the United States as a 51st state.

Also Read | ‘Don’t need your cars’: Donald Trump lashes out at ‘tariff abuser’ Canada after Ontario’s power move

“This would make all Tariffs, and everything else, totally disappear. Canadians taxes will be very substantially reduced, they will be more secure, militarily and otherwise, than ever before, there would no longer be a Northern Border problem,” Trump said.


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