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President Donald Trump has announced that Canadian cars, trucks, auto parts, and steel will face 50% tariffs starting January 1, 2027, days after trade talks between the two countries fell apart.

Some shit you should know before you dig in: Negotiations aimed at unwinding the tariffs both sides have had in place since last April collapsed last week, and each government blames the other. Canadian Prime Minister Mark Carney said his negotiators walked because the US proposed terms that were uneconomic and unfair, and that he would not compromise Canadian sovereignty or undermine key industries. White House sources told Politico that Canada dropped medium- and heavy-duty trucks on the table with the deal nearly done, blowing up the talks. Carney denies it, saying the Americans were the ones who changed course at the end, stripping bigger trucks out of the deal after both governments had already settled on a 15% auto rate. With no deal, 50% US tariffs hit about $20 billion in Canadian goods early Saturday, covering everything from hockey sticks to cement.

What’s going on now: Trump announced the auto escalation on Truth Social, framing it as punishment for years of what he called Canadian freeloading. “On January First, 2027, Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50%. Build in the U.S. and there are ZERO TARIFFS. Canada will be treated like a State no longer!”

He added, “On Trade, and in other ways, also, they are among the worst Nations in the World to deal with. They feel entitled, and yet, WE DON’T NEED CANADA, THEY NEED US!”

The math on the announcement is murky. Canadian autos currently face a 25% rate, so that number doubles, and auto parts had not been tariffed at all until now. Steel from Canada is already at 50%, and Trump did not clarify whether he means to push it to 100%. Nothing in the post addressed USMCA-compliant cars and parts, which have been exempt up to now. The administration announced on July 1 that it was letting USMCA lapse as written, and the pact now runs on year-by-year reviews with no long-term guarantee.

Despite all of this, Canada is not backing down. Carney has promised to match the new tariffs dollar for dollar, with retaliatory duties starting September 8 covering dairy, electronics, steel, appliances, pulp and paper, and agricultural equipment. Bloomberg reported Sunday that Carney is building the retaliation to outlast Trump, keeping it on the books through the end of his presidency if that is what it takes. “You’re at war when you get attacked,” Carney told reporters in Ottawa Saturday. “We got attacked.” Ontario Premier Doug Ford went further, telling the Associated Press that Trump had declared economic war on America’s closest ally and threatening to cut off electricity exports and critical minerals. “I’ll cut them off,” Ford said. “You won’t get a grain of sand out of Ontario.”

Trump fired back that someone should get “these clowns” in line or the consequences would be worse.

No further talks are scheduled. Carney said Monday that Washington needs the right attitude toward Canadian industry before anyone returns to the table.