'We don't want your cars': Trump says 25% tariff on cars made in Canada could go up

U.S. President Donald Trump has warned that existing tariffs on Canadian automobiles could be increased, signalling a further escalation in trade tensions just days before Canadians head to the polls.

“When I put tariffs on Canada – they’re paying 25 per cent – but that could go up, in terms of cars,” Trump said from the Oval Office on Wednesday. “All we’re doing is we’re saying, ‘We don’t want your cars, in all due respect. We want, really, to make our own cars.’”

The remarks were part of a broader speech laced with economic nationalism. Trump again questioned Canada’s relevance without U.S. trade support.

“Canada would cease to exist as a country” if the United States stopped buying its goods, he said.

Targeting Canadian auto imports
At the heart of Trump’s announcement is the existing 25% tariff on vehicles imported from Canada. Though some cars made under the United States-Mexico-Canada Agreement (USMCA) are exempt, Trump left open the possibility of raising tariffs further, stating, “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.”

The North American auto industry is highly integrated. Cars and parts routinely cross the U.S.-Canada border multiple times before reaching the consumer. Despite this complexity, Trump continues to push for greater self-reliance in car manufacturing.

“We don’t really want Canada to make cars for us, to put it bluntly. We want to make our own cars,” he reiterated.

Rising Canadian nationalism ahead of election
Trump’s comments come at a politically sensitive moment. Canadians are preparing to vote on April 28, and the U.S. president's statements have sparked debate about sovereignty, trade, and national identity.

Trump’s previous threats included making Canada the “51st state,” a suggestion he has since walked back following a call with Canadian Prime Minister Mark Carney last month.

Still, the damage may already be done. Many Canadians have interpreted Trump's rhetoric as intrusive and offensive, fuelling a wave of nationalism that is shaping the election campaign.

Carney has countered Trump's assertions with a call for unity and self-sufficiency within Canada itself.

“We can give ourselves far more than Donald Trump can ever take away,” Carney said recently. “We can have one economy. This is within our grasp.”

A changing relationship
Trump’s trade war with Canada has upended a decades-long economic partnership. For over 40 years, the U.S. and Canada have maintained deep commercial ties, particularly in energy, agriculture, and automotive manufacturing.

Now, Trump’s administration is not only imposing auto tariffs but also maintaining separate 25% duties on Canadian goods, which he has linked to efforts to combat drug smuggling.

These moves have prompted auto manufacturers like Honda, Hyundai, and Volkswagen to reassert their investments in U.S. plants, offering the White House a talking point. Yet economists warn that American consumers may face higher prices as a result.

Meanwhile, Carney is focusing on removing trade barriers within Canada, aiming to unify the country's internal market by 1 July.

“Eliminating trade barriers within Canada would benefit Canadians,” he said last week, urging voters to support his plan.

While Trump clarified he is not currently considering an immediate tariff hike, he kept the option on the table.

For Canadians, his words carry weight. With their election looming and economic ties under strain, Trump’s message has underscored just how intertwined trade and politics have become across North America.

(With inputs from Reuters)