Washington, Aug 2026 : US President Donald Trump has threatened to impose fresh tariffs on automobiles manufactured in Canada, accusing the neighbouring country of treating the United States unfairly on trade and saying Washington no longer wants Canadian factories producing vehicles for the American market.
Speaking to reporters during an event in the Oval Office, Trump said the United States would introduce tariffs on Canadian-made cars, although he did not specify the proposed rate or provide a timeline for implementing the new duties.
“We’re going to be doing tariffs on their cars,” Trump said. Explaining the rationale behind the move, he added, “We don’t want them to make cars for America.”
Trump further accused Canada of taking advantage of the United States economically, saying, “Canada treat us very badly.” He also claimed that Canada was “ripping us off on trade” and suggested that Ottawa wanted a relationship with Washington similar to that of a US state, something he said his administration could no longer accept.
The tariff threat came as Trump signed an executive order directing the US government to refer to Lake Ontario as “Lake America”. The White House described the order as an effort to honour what it called “the American history of the Great Lakes” and formally rename Lake Ontario.
The administration, however, did not immediately provide details about how the new designation would be used in official dealings with Canada. Lake Ontario is one of the five Great Lakes and is shared by the United States and Canada.
Interior Secretary Doug Burgum, US Trade Representative Jamieson Greer and White House Deputy Chief of Staff Stephen Miller were among those present during the Oval Office event.
Trump also used his interaction with reporters to address a number of international issues, including the devastating floods in Nepal. He said the United States had contacted the Nepalese government and offered assistance.
“We’ve called Nepal and offered any help that they need,” Trump said, describing the situation as “brutal”. Washington has announced emergency assistance and the deployment of a disaster-response adviser to support relief efforts following the floods.
On Iran, Trump said Tehran continued to face intense economic and military pressure despite the reopening of the strategically important Strait of Hormuz. He claimed Iran was struggling to meet payments to its military personnel and was in a difficult position.
“They’re not paying their troops. They’re in deep trouble,” Trump said.
He also warned that the reopening of the Strait of Hormuz did not necessarily signal an end to the US military campaign or pressure on Iran.
“It doesn’t mean we finished with the military,” Trump said, while ruling out immediate negotiations with Tehran. According to Trump, there was currently little reason for Washington to hold talks with Iran as the strategic waterway had reopened.
Trump also commented on Russia’s relationship with Iran and was asked whether Moscow could face penalties if it maintained its ties with Tehran. He said any decision would depend on Russia’s future conduct, while describing its behaviour regarding the Strait of Hormuz as satisfactory so far.
On Russia-NATO tensions, Trump dismissed concerns that Russian President Vladimir Putin could order an attack on NATO territory, saying he did not believe such an attack would happen.
The US President also left open the possibility of imposing sanctions on Chinese banks. Asked whether Washington was considering such measures, Trump responded, “Who says I’m not?” He added that he was not required to publicly announce every decision being considered by his administration.
Trump’s latest threat against Canadian automobiles could have significant implications for the North American automotive industry. The US and Canadian auto sectors are deeply integrated, with vehicles and components frequently crossing the border several times during the manufacturing process.
Trade between the two countries in automobiles and parts is primarily governed by the United States-Mexico-Canada Agreement, which came into force in July 2020. Any new tariffs could therefore affect manufacturers, suppliers and consumers on both sides of the border.
