Trump Proposes 100% Tariff on Canadian Automobiles

President Trump threatens to impose 100% tariffs on cars imported from Canada. Photo: Bloomberg.

The Carscoops page cites an interview with President Donald Trump on Fox News, in which the 47th President of the United States threatens to impose tariffs of up to 100% on cars manufactured in Canada.

“If you look at Canada, they have a very big auto industry. They’ve taken advantage of us. If we don’t make a deal with Canada, we will be putting a very big tax, a very big tariff, on their cars, maybe 50% or 100% because they have taken advantage of our country for a long time,” President Trump said in the Fox News interview.

In response to this statement, many industry experts have expressed concern and disagreed with the decision, deeming it unwise.

“Just last week, when we were facing a potential 25% tariff on goods (from Mexico and Canada), including cars and car parts, I stated that as soon as that tariff took effect, the US auto industry would grind to a halt within a week,” said Mr. Flavio Volpe, President of the American Automotive Parts Manufacturers Association, in an interview with Global News. He asserted that such a policy would likely lead to a halt in production for American car brands.

The Chevrolet Silverado, sold in the US, is manufactured in Canada. Photo: General Motors.

According to Carscoops, several car models sold in the US are currently being produced in Canada, including the Chevrolet Silverado, Dodge Charger Daytona, and Chrysler Pacifica. Canada has also been responsible for manufacturing certain car models that have since been discontinued, such as the Chrysler 300 and Dodge Challenger.

As per Forbes, Ford CEO Jim Farley has publicly criticized what he perceives as unfair tariff policies imposed by the US government.

Contrary to President Trump’s assertion that strengthening the US manufacturing industry is a top priority, Mr. Jim Farley believes that, up to this point, the US government has created a significant amount of “policy instability” due to constantly changing tariff policies, as well as uncertainty surrounding the potential elimination of tax incentives for electric vehicles.

It’s not just American car brands that are affected; many foreign car manufacturers also produce cars in Canada for export to the US market.

Data from JATO Dynamics reveals that approximately 40% of Stellantis’ US sales originate from Mexico or Canada. Similarly, Toyota imports around 25% of its vehicles sold in the US from these two countries.