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US-Canada Trade War Escalates Over Auto Tariffs

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PublishedAugust 24, 2026
The US-Canada trade dispute has intensified after Donald Trump threatened to raise tariffs on autos. The move would increase taxes on car imports and likely make cross-border vehicles more expensive. Mark Carney, Canada’s trade official, sharply rejected the threat. He accused Trump of wanting to “destroy” Canada’s auto industry, arguing that the policy targets a key part of Canada’s economy. Carney also said Canada is prepared to retaliate if the US imposes higher tariffs. Carney further set conditions for any return to negotiations. He said Canada would only resume trade talks if the US shows the “right attitude,” suggesting that the current approach is too aggressive and does not support a fair agreement.
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