Donald Trump threatened a 50% tariff on all Canadian vehicle and part imports. The proposed levies would take effect on January 1, 2027. This threat follows the collapse of bilateral trade negotiations over the weekend.
Toyota faces significant exposure due to its major manufacturing operations in Ontario. The company builds its top-selling RAV4 SUV and Lexus RX models at these Canadian facilities. Ontario plants export the vast majority of their production to the United States. These tariffs could force production shifts and increase prices for American consumers.