President Donald Trump said tariffs had revived and saved the U.S. automobile industry, citing a Ford plant in Detroit, while Treasury Secretary Scott Bessent and other U.S. officials accused Canadian Prime Minister Mark Carney of abandoning a trade deal; Canada disputed aspects of that account. The United States imposed 50% tariffs on Canadian goods in August 2026, with source accounts citing covered values of about $20 billion and $27.6 billion, and Canada scheduled reciprocal tariffs on a similar value of U.S. imports for Sept. 8, 2026. Japanese automakers Toyota and Honda produce more than three-quarters of vehicles made in Canada and are more exposed than GM, Ford or Stellantis: Canadian-built vehicles accounted for nearly a quarter of Honda’s U.S. sales and 17% of Toyota’s, including some RAV4 and CR-V SUVs shipped to U.S. dealers. Trump has threatened to raise tariffs on Canadian autos, trucks and parts to 50% from 25% starting Jan. 1, 2027, a step JPMorgan analysts say could render some Canadian assembly lines economically unfeasible. Honda said it will reconsider U.S. investment in a new plant if a formal USMCA pact is not ratified. Oxford Economics said 50% Section 338 tariffs on select Canadian goods lifted the overall U.S. effective tariff rate by 0.2 percentage point to 9.9%, that dollar-for-dollar Canadian retaliation could trim 0.1 percentage point from U.S. GDP growth next year, and that layered auto tariffs could push the effective rate to 10.1% or 10.4% depending on USMCA exemptions; new-vehicle prices remain only about 0.4% above their pre-tariff trend as industry players absorbed most earlier costs.