U.S. and Canada’s trade tensions are reaching a boiling point, and if Donald Trump follows through on his latest tariff threat, your next car could cost a whole lot more. Speaking in a Fox News interview earlier this week, the former president hinted at a jaw-dropping 100% tariff on Canadian imports—including some of America’s best-selling vehicles like the Toyota RAV4, Chevrolet Silverado HD, and Ford F-Series Super Duty. The potential impact? A massive spike in car prices across the board.
Trump Puts Canadian and Mexican Tariffs on Hold—For Now
While Trump had previously suggested imposing a 25% tariff on imports from Canada and Mexico, he recently announced a temporary delay of at least a month. But make no mistake—the reprieve might not last long. He cited a staggering $500 billion trade deficit with the U.S.’s northern and southern neighbors, blaming previous administrations for allowing foreign car manufacturers to thrive at America’s expense.
“You look at Canada, and Canada has a very big car industry. They stole it from us. They stole it because our people were asleep at the wheel … If we don’t make a deal with Canada, we’re gonna put a big tariff. It could be 50 or 100 percent because we don’t want their cars. We want to make our cars in Detroit.”
—Donald Trump
Without offering alternative solutions, Trump made it clear that his approach revolves around tariffs, leaving automakers scrambling to assess the financial impact. Canadian Prime Minister Justin Trudeau, meanwhile, has appointed a new intelligence advisor to oversee border security—a move that some believe is a strategic response to Trump’s latest threats.
Canada’s Counterpunch: Retaliatory Tariffs on American Goods
Trump’s tariff threats didn’t go unanswered. Canada quickly retaliated with its own set of import taxes on distinctly American products like Florida orange juice, Kentucky bourbon, dairy, lumber, clothing, and tires. These sweeping tariffs were designed to hit industries deeply tied to the U.S. economy, encouraging Canadians to buy local instead. However, in an effort to continue trade talks, Canada has also agreed to hold off on implementing its measures for at least 30 days.
Ford CEO Fires Back at Trump’s Plan
Ford CEO Jim Farley isn’t staying silent about the proposed tariffs, calling them a potential disaster for the auto industry. Ford, which manufactures popular models like the Escape, Bronco Sport, and Mustang Mach-E in Mexico, stands to lose big if new tariffs are enacted. Farley also pointed out that if American automakers face import taxes, then companies from South Korea and Japan should too.
His stance? If tariffs are imposed, they should be applied across the board—not selectively targeting Canada and Mexico while letting other foreign automakers off the hook.
With tensions mounting and the clock ticking, car buyers and manufacturers alike are left wondering—will Trump’s tariff threats become reality, or is this just another high-stakes negotiation tactic? One thing’s for sure: the future of North American auto manufacturing is hanging in the balance.
