United States President Donald Trump issued a warning on Thursday that the existing 25% tariff on automobiles imported from Canada could be raised. His statement came as part of broader comments on U.S.-Canada trade relations during an informal press briefing.

Trump noted that trade negotiations with Canadian Prime Minister Mark Carney were progressing positively, describing their recent discussion as 'very good' and characterizing overall talks as 'going very well.'

Despite this optimism, the president made it clear that automobile tariffs remain on the table. 'We don’t need Canadian cars. They should be made in the USA,' he emphasized. Trump’s remarks highlight his administration’s continuing focus on reshoring manufacturing and reducing dependence on foreign imports—especially in strategic sectors like the auto industry.

However, he clarified that there are no current plans to alter tariffs on auto parts. The distinction suggests the administration may seek to target completed vehicles more aggressively while avoiding disruptions to supply chains that rely on parts trade between the two countries.

The potential tariff escalation underscores Trump’s protectionist trade approach and his push to incentivize domestic production. It also introduces uncertainty into U.S.-Canada trade relations just as the two nations appear to be making progress in ongoing discussions.

As trade policy remains a key component of the Trump administration’s economic agenda, any shift in automotive duties could impact both markets significantly—affecting consumers, manufacturers, and cross-border supply chains.