U.S. President Trump has threatened to increase tariffs on Canadian vehicles, trucks, and parts from 25% to 50% starting 1 January 2027. Canada already applies a 25% import tax on certain U.S. vehicles, matches U.S. rates of 50% on steel and aluminum, and has imposed duties on U.S. wood products. Oxford Economics lead economist Bernard Yaros stated that prior buffers against price increases have eroded.