Business

US-Canada Trade War Escalates Over Auto Tariffs

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PublishedAugust 24, 2026
The trade dispute between the US and Canada is escalating. Donald Trump threatened to increase tariffs on autos, which would raise costs for car trade between the two countries. In response, Mark Carney, Canada’s trade official, criticized Trump’s approach. He said Trump wants to “destroy” Canada’s auto industry. Carney also warned that Canada would retaliate if the US follows through with the tariff hike. Carney added that Canada is not ready to restart trade talks yet. He said talks could resume only if the US comes with the “right attitude.” For now, both sides remain in a tense standoff over auto tariffs and trade rules.
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