President Donald Trump has hinted at increasing the 25% tariff on Canadian automobile imports on Thursday, suggesting the U.S. auto industry would be better off without Canadian involvement.
What Happened: “I really don't want cars from Canada. So, when I put tariffs on Canada, they're paying 25%, but that could go up in terms of cars. When we put tariffs on, all we're doing is saying, ‘We don't want your cars, with all due respect.' We really want to make our own cars — which is what we're doing, in record numbers,” Trump said from the Oval Office.
The comments come amid ongoing trade tensions after the Trump administration imposed sweeping 25% tariffs on all automobile imports earlier this month, with partial exemptions for vehicles produced under the Canada-U.S.-Mexico Agreement.
“We don’t need anything from Canada,” said Trump, who previously suggested the country should become a U.S. state. He mentioned having constructive discussions with Canadian Prime Minister Mark Carney but did not comment on Canada’s upcoming election.
See Also: Tesla Q1 Misses Estimates As Tariff Pressures Weigh On Outlook, Lower-Cost EVs Still On Track
Why It Matters: The tariffs are already causing significant disruption across the automotive sector. Goldman Sachs estimates they could reduce Canada’s GDP by 1-4% while adding inflationary pressure of up to 2%.
For U.S. automakers like General Motors Co. (NYSE:GM) and Ford Motor Co. (NYSE:F), which rely heavily on cross-border supply chains, the tariffs represent billions in potential added costs. The Center for Automotive Research recently projected the auto industry could face costs exceeding $108 billion from the tariffs.
The measures are part of Trump’s broader trade strategy that has also targeted Mexico and China, where tensions continue to escalate after recent implementation of 125% tariffs on Chinese imports.
Read Next:
Image Via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.