President Donald Trump has threatened to hike US tariffs on automobiles originating in Canada, as the trade war between the two neighbours continues to heat up.
Trump said on Monday that he will increase tariffs on Canadian cars and trucks, as well as auto parts, from 25% to 50% as of 1 January.
It comes after US-Canada trade talks collapsed late last week, with each side accusing the other of making unreasonable last-minute demands.
Prime Minister Mark Carney called Trump’s latest levy threat unsurprising and accused the president of wanting to destroy Canada’s auto industry. He added that Canada is ready to resume talks if the US comes with the “right attitude”.
The war of words followed several US and Canadian officials saying that talks are suspended with no set date to resume.
Canada walked away from trade negotiations late on Friday night, moments before a US-imposed deadline that would add a 50% levy on nearly $20bn (C$28bn; £14bn) of Canadian imports.
The collapse in talks marked a significant change in tone from earlier in the week, when both sides appeared optimistic that a new US-Canada trade deal could be reached.
Canadian officials have said the US introduced last-minute demands that were “unacceptable”, including a clause limiting which countries Canada could sign trade deals with.