Ankara: US President Donald Trump announced on Monday that the United States will impose a 50% tariff on all Canadian cars, trucks, automotive parts, and steel beginning January 1. The decision marks a significant escalation in the ongoing trade dispute between the two nations.

According to Anadolu Agency, President Trump expressed his dissatisfaction with Canada on his social media platform Truth Social. He accused Canada of imposing "ridiculously high" duties on American agricultural products, which he claims have severely impacted US farmers and contributed to a $60 billion annual trade deficit. Trump emphasized that Canada "will be treated like a state no longer" and described it as a challenging partner in trade negotiations.

US Trade Representative Jamieson Greer attributed the breakdown in negotiations to Canada's demands. He told CNBC that despite significant progress in discussions, Canada sought further concessions, which he implied were driven by political motives. Greer highlighted that the US had made efforts to address Canadian concerns by reducing tariffs on various goods.

The announcement follows a stalemate in talks after Canadian Prime Minister Mark Carney halted negotiations, citing last-minute US demands as "unfair and uneconomic." Carney announced plans for retaliatory tariffs starting September 8, framing the situation as a trade "war" triggered by a miscalculation in US policy.

According to a report from The Globe and Mail, Canada refused US propositions that included a 4-million-ton quota on steel exports and rules that favored American-made automotive content. The report also mentioned US demands for changes to Quebec's cultural laws and the dairy supply-management system. Additionally, the failed deal aimed to link trade with national security matters, such as Canada's F-35 fighter jet acquisition and the Golden Dome missile defense system, along with tighter controls on oil exports and coordination on critical minerals.