Trump threatens 50% tariffs on Canadian cars and auto parts, after breakdown in trade talks
Donald Trump has threatened to increase tariffs on Canadian cars, trucks, auto parts and steel to 50% today, after trade negotiations between Washington and Ottowa broke down last week.
On Truth Social, the president blasted Canada, and said the new duties will go into effect on 1 January 2027. “On Trade, and in other ways, also, they are among the worst Nations in the World to deal with. They feel entitled, and yet, WE DON’T NEED CANADA, THEY NEED US!” Trump wrote.
This latest escalation comes after Canadian prime minister Mark Carney rejected the latest deal on Saturday, after Trump previously slapped a 50% tariff on $20bn worth of Canadian exports – ranging from hockey equipment to electronics.
Carney said the Trump administration’s final demands went too far: “They asked too much and offered too little.”
Key events
Vice-president JD Vance is speaking at a defense technology manufacturing facility in Brewer, Maine at the moment. As I noted earlier, Susan Collins – the Republican senator from Maine who is facing a competitive re-election race this year and criticized the faltered trade talks between the US and Canada, is not appearing alongside Vance today, with her campaign telling local media that she had a clashing commitment.
“Whenever I’m in Maine, I’ve got to give Susan a little bit of crap,” Vance said on stage today. “As you know Susan is the most independent member of the United States Senate, and as the president of the United States Senate she sometimes makes my job just a little bit harder.”
He added: “But she makes it harder, because she’s coming to work every day and fighting not for a political party or not for any abstraction. She comes to work every single day and fights for the great people of Maine … she tries to get as much good for this state out of Washington, and as little bad out of Washington for this state. Which, by the way, is a very hard job.”
Collins, who will face former state lawmaker Troy Jackson in November, is contending with a spike of anti-Trump animus going into the midterm elections. Democrats have sought to categorize her so-called “independence” and “moderation” as weak checks on the president’s agenda, often mocking her “concerns” about Trump’s hardline policies.
‘They wanted more and we weren’t prepared to do that’: US trade representatives blames Canada for collapsed talks
In an interview with CNBC ahead of Donald Trump announcing his latest threat to implement 50% tariffs on Canadian cars and auto parts, Jamieson Greer, the US trade representative, said that Canada is ultimately responsible for the collapsed talks over the weekend to reach a deal on the duties between the two countries and longtime allies.
“We set about to finalize it, and then in the last hours, I think there were things that the Canadians just – you know, they wanted more,” Greer said today. “I don’t know if it was political for them. It certainly doesn’t make economic sense, but perhaps for political reasons … they wanted more and we weren’t prepared to do that.”
Republicans pushback on Trump policy to temporarily pause import tariffs on foreign beef
Following Donald Trump’s announcement that there would be a temporary pause on tariffs to allow for more than 300,000 metric tons of foreign beef to be imported to the US, a number of Republicans have pushed back on the latest trade policy – arguing that it stands to negatively impact American ranchers who are already feeling the burden of higher costs.
The president has said the move, announced on Friday, would “reduce prices for Americans while giving space for our Great American Beef Herd to grow again”, however, several GOP lawmakers claim this is a short-term fix for a chronic problem, namely a 75-year low in US cattle supply.
“I absolutely want to see those prices come down,” said Congresswoman Ashley Hinson, the Republican nominee in a competitive US Senate race in Iowa. “But I think this isn’t the way to do that.”
In an interview with Fox News on Sunday, Hinson added: “I think we need to focus on letting our cattle men grow their herd … it takes some time and it takes some resources, and so I think we should be letting market conditions to do what they do – demand for beef is still really high.”
Other Republicans in states with sizeable cattle farming industries also criticized the president’s recent decision. “Short term policy shifts do not equal long term solutions,” said Pete Ricketts, a GOP Senator from Nebraska and frequent ally of the Trump. “Flooding the market with lower quality beef compromises Nebraska farmers and ranchers. They should be enabled to grow herd sizes and meet consumer demand.”
Another Trump loyalist, Senator Tim Sheehy of Montana, said that while the president’s “heart is in the right place on wanting lower prices for the American people”, the action would actually make it more difficult for American ranchers to rebuild their herd.
Aside from beef, other Republicans criticized the Trump administration’s ongoing trade war with Canada over the weekend. Senator Susan Collins, a Republican from Maine who is facing a re-election battle this year, called the “on-again/off-again” trade talks between the US and Canada would lead to “higher costs, risk, and uncertainty” for businesses in Maine – which borders Canada.
“Ever since the tariffs were first announced, I have heard from many businesses, farmers, and lobstermen concerned about the cost of navigating the tariffs, the lack of domestic supply chains, and the likely imposition of retaliatory tariffs by Canada,” Collins said in a statement after trade talks broke down over the weekend, urging “both sides to return to the negotiating table”.
A reminder that the current tariff on Canadian automobiles and parts sits at 25%.
After the trade talks with the US collapsed over the weekend, Mark Carney vowed “dollar for dollar” retaliation on the initial round of 50% tariffs that went into force on Saturday.
“You’re at war when you’re attacked, and we got attacked,” the Canadian prime minister told reporters in Ottawa. “We cannot accept what they’ve offered and we will not give what they’ve asked.”
Earlier, Carney said that “last-minute changes in the US proposed terms were unfair, uneconomic and called into question the reliability of any deal”, and ultimately led to collapse in talks.
Trump threatens 50% tariffs on Canadian cars and auto parts, after breakdown in trade talks
Donald Trump has threatened to increase tariffs on Canadian cars, trucks, auto parts and steel to 50% today, after trade negotiations between Washington and Ottowa broke down last week.
On Truth Social, the president blasted Canada, and said the new duties will go into effect on 1 January 2027. “On Trade, and in other ways, also, they are among the worst Nations in the World to deal with. They feel entitled, and yet, WE DON’T NEED CANADA, THEY NEED US!” Trump wrote.
This latest escalation comes after Canadian prime minister Mark Carney rejected the latest deal on Saturday, after Trump previously slapped a 50% tariff on $20bn worth of Canadian exports – ranging from hockey equipment to electronics.
Carney said the Trump administration’s final demands went too far: “They asked too much and offered too little.”
Today is also the last full day of campaigning for Darline Graham and Ralph Norman as they head into a run-off election on Tuesday for the Republican nomination for US Senate.
A reminder that Darline Graham was appointed to finish the remainder of he brother Lindsey Graham’s term in office, after he died in July. With Donald Tump’s endorsement, Darline announced her bid for a full term. While she’s leading Norman – a five-term congressman – in the polls, this would be Darline’s first time officially winning and holding public office.
In recent weeks, however, there have been increased concerns among Republicans in South Carolina about Darline Graham’s legislative skillset. Last week, during a primary debate with Norman, Graham admitted that she was “not that informed on national security”.
However, Trump and South Carolina Senator Tim Scott, a Republican, have both come to Graham’s defense in recent days. The president even traveled to Myrtle Beach, South Carolina to campaign for Graham, and defended her debate performance. “I thought it was a very honest answer, actually,” he said.
Meanwhile, Scott said in an interview with NBC News on Sunday that Graham was prepared to serve in the Senate, calling her “the real deal” and deeming her “highly qualified, incredibly competent, ready for prime time”.
Cecilia Nowell
New Mexico will continue funding gender-affirming care for minors after a federal rule ending Medicaid support for such care goes into effect.
On 13 August, the Trump administration finalized a rule – set to go into effect on 13 October – that will end funding for gender-affirming care through Medicaid and the Children’s Health Insurance Program (Chip).
New Mexico’s “Health Care Authority is planning to continue covering these services using state funds”, Timothy Fowler, a state health care authority spokesperson, wrote in an email to the Santa Fe New Mexican.
Earlier this year, New Mexico also announced that it would cover the cost of expiring Affordable Care Act tax credits for residents who purchase health insurance on the state marketplace. In July, a news analysis showed that New Mexico was the only state in the country where Affordable Care Act enrollment increased after federal subsidies expired at the end of 2025.
In recent years, New Mexico has become a haven for gender-affirming healthcare in the south-west. In 2023 the state legislature passed a Reproductive and Gender-Affirming Health Care Freedom Act, and a growing number of families have relocated to the state as protections for transgender youth disappeared in neighboring states. The Williams Institute at the University of California, Los Angeles, estimates that 4,800 transgender teens between the ages of 13 and 17 live in New Mexico today.
Trump claims Iran is ‘completely collapsing’ ahead of new sanctions announcement
Meanwhile, ahead of the treasury secretary’s annoucement, Donald Trump has taken to Truth Social to insist that “IRAN IS COMPLETELY COLLAPSING!!!”
It’s a common refrain from the president, but perhaps takes on a new meaning ahead of the fresh sanctions that we’re expecting later today. My colleagues are covering the latest reactions to the Iranian economy ahead of Bessent’s press conference. This includes the news that Iran’s currency has weakened to an all-time low.
The rial was trading at 1.992m per dollar on the unregulated market on Monday, according to Bloomberg News, which cited data from tracking website Bonbast – down 4.5% since last week.
Treasury secretary to announce new sweeping Iran sanctions
Today we can expect a new round of sweeping sanctions on Iran from treasury secretary Scott Bessent.
The US also said it would impose steep penalties on any country trading with Tehran.
Bessent called the plan, which he prefaced in an op-ed in the Financial Times, as “the single greatest financial offensive ever marshalled against an adversary”.
We’ll bring you the latest from the treasury secretary’s press conference at 2pm ET.
He warned of an “economic D-Day” for Iran, as the war –now in its sixth month – shows no signs of easing.
As my colleague Patrick Wintour reports, in advance of the US announcement, the United Arab Emirates, Iran’s single biggest trading partner in the Middle East, announced it was ending all trade with Iran. It’s a move Tehran believes was coordinated between Washington and the UAE.
The new sanctions will also be a test for China and Russia to see if the US follows through on its vow to punish the countries for their continued trading with Iran.
Donald Trump is in Washington today. He’ll spend most of the day in meetings that are closed to the press, but we’ll hear from the president at 2.30pm ET when he hosts a Rose Garden event at the White House.
We’ll bring you the latest lines here as that gets under way.
Rachel Leingang
Election deniers are back on the ballot. In most swing states, at least one major Republican candidate has questioned or outright denied the results of the 2020 US presidential election, which Donald Trump lost to Joe Biden.
While voters in swing states have previously largely rejected candidates who denied election results, Republicans running for statewide offices across much of the country are trying again.
In Arizona, gubernatorial candidate and US representative Andy Biggs voted against certifying his own state’s election results. In Wisconsin, Republican gubernatorial hopeful Tom Tiffany similarly voted against certifying the 2020 results as a US representative for his state.
Candidates for governor in Pennsylvania and Michigan have cast doubt on the validity of the 2020 results. And some swing state Republican candidates for secretary of state have questioned or denied election results.
Governors sign off on state election results, issuing certificates to the presidential electors of whichever candidate wins. They can call for investigations or special sessions, and use their bully pulpit to cast doubt on election results. Secretaries of state are meanwhile the chief election officials in most US states, overseeing voting systems and advising the local jurisdictions that run elections. They usually play a role in certifying election results, too.
In 2020, Trump pressured governors and secretaries of state, alongside a host of state and local officials in several swing states, to withhold their signatures in a broad campaign to overturn his loss. Swing state governors and secretaries of state refused to stall or impede their states’ results.
But if election deniers or skeptics are elected to these key statewide roles, they would be in office in 2028, raising apprehension that they may refuse to sign off on results, or succumb to pressure from Trump and his allies, should Republicans lose.
Lauren Aratani
Over a dozen US companies that signed a 2021 letter urging Congress to strengthen the Voting Rights Act continue to contribute to state political groups that are actively working to undermine the legislation, according to a campaign finance watchdog.
Researchers at the Center for Political Accountability (CPA), a nonpartisan organization that tracks financial disclosures, found that companies – including Airbnb, DoorDash, Target and Zillow – that signed the letter are contributing to groups known as 527 organizations that prop up key state races, according to data provided exclusively to the Guardian.
Four longtime donors to these groups, Amazon, Google, Meta and Microsoft, had either stopped contributing entirely or lowered their contributions to Republican and Democratic groups for the 2022 midterms, but have resumed contributions for the current election cycle.
The January 6 insurrection created a brief reckoning among corporate leaders, many of whom criticized Donald Trump’s role in inciting the violence. The Republican Attorneys General Association (Raga), a 527 organization, was under scrutiny after reports revealed the group sent out robocalls to people encouraging them to attend a “Stop the Steal” rally in front of Congress on January 6 2021 – which preceded the insurrection. Raga leaders later said they had no knowledge of the robocalls.
But the companies have resumed their donations to Raga and, in some cases, have become new contributors to the group. Google’s contribution went from $100,400 in the 2018 election down to $50,000 in 2022. So far this election, the company has donated $325,000 to Raga.
Ramon Antonio Vargas
Dan Sullivan supports Dan Sullivan against Dan Sullivan in Alaska’s US Senate election, says a former Alaskan mayor who recently backed the race’s Republican incumbent over a challenger sharing their name.
That development provided another of multiple absurd elements to Dan S Sullivan’s campaign for a third term in the US Senate, which – beside Mary Peltola, a former Alaska Democratic congresswoman – has drawn opposition from Dan J Sullivan.
Dan J Sullivan emerged from an 18 August primary to join a four-candidate field rounded out by Dan S Sullivan, Peltola and one other contender. His presence in the field for the general election during the 3 November midterms has prompted accusations that he is a Democratic plant aiming to draw enough votes away from Dan J Sullivan – whose name was positioned consecutively to him on the primary ballot – so that Peltola can win.
Donald Trump’s Republican party is projected to lose congressional seats during the midterms, and the president wrote on social media on the day of the primary: “ALASKA: Be careful. VOTE FOR THE REAL DAN SULLIVAN TODAY.
“The Dumocrats know how good he is and have put up an imposter of the same name.”
Trump was not the only Republican politico to come out swinging for Dan S Sullivan’s re-election bid on the day of the primary, in which Peltola finished first. Another who came out in favor of the incumbent was Dan A Sullivan, the mayor of Anchorage, Alaska, for six years beginning in 2009.
Hakeem Jeffries meeting with Jared Kushner sparks fierce backlash
Hello and welcome to the US politics live blog.
House Democratic leader Hakeem Jeffries’ meeting with Jared Kushner, the president’s influential son-in-law, has sparked backlash from his own party and other Donald Trump critics.
The reported meeting comes months ahead of the November midterm elections in which Democrats are favored to retake the US House, a development that would make Jeffries speaker.
If they are in the majority, Democrats are expected to use their oversight power to aggressively investigate the Trump administration, including self-enrichment by the president and his family.
There are longstanding conflict-of-interest concerns about the way Kushner has continued to make money from foreign nations as he works on foreign affairs, including conflicts in Ukraine, Iran and Gaza.
Asked about the reported meeting, Jeffries said in a statement:
Throughout this Congress, Republicans have adopted a my-way-or-the-highway approach to governing that has failed the American people. To stop the madness, we have repeatedly made clear that an extremist approach will not work and will be met with forceful opposition.
The American people want bold change and that’s what House Democrats will deliver. In every conversation that we have with the Trump administration, we will continue to make it explicitly clear that the affordability crisis is not a hoax and nothing short of transformational policy change is acceptable. We are fighting for an affordable America. The question is whether Republicans will join us.
Nonetheless, among some who lamented the reported gathering was Tommy Vietor, previously an aide to former president Barack Obama and now a co-host of the left-leaning podcast Pod Save America.
“Jared Kushner has no actual government job he just uses his family connections to get money from gulf autocrats and fund corrupt deals. The only way [Jeffries] should work with him is with demands for documents and subpoenas,” Vietor posted.
Asked whether he supported the meeting during an interview on NBC’s Meet the Press on Sunday, Senator Chris van Hollen – a Maryland Democrat – said: “I’m in favor of people meeting with whoever they want to discuss ideas. But it’s one thing to have a meeting. It’s another thing to see something real come out of that.”
Adam Kinzinger, a former Republican congressman from Illinois who is an outspoken Trump critic and served on a House committee that investigated the Capitol attack, posted in reference to the meeting, “Make this make sense,” while tagging Jeffries.
Read the full story here:
In other developments:
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Tim Scott defended fellow US South Carolina Republican senator Darline Graham’s knowledge of national security issues ahead of their state’s runoff election on Tuesday. Graham, who was appointed to fill the Senate seat held by her brother Lindsey Graham after his sudden death in July, is in a Republican primary runoff against South Carolina congressman Ralph Norman.
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Dan Sullivan supports Dan Sullivan against Dan Sullivan in Alaska’s US Senate election, says a former Alaska mayor who recently backed the race’s Republican incumbent over a challenger sharing their name. That development provided another of multiple absurd elements to Dan S Sullivan’s campaign for a third term in the US Senate, which – beside Mary Peltola, a former Alaska Democratic congresswoman – has drawn opposition from Dan J Sullivan.
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The Donald Trump aide Natalie Harp flooded a since-disabled social media account with pro-Trump posts on the day that the president’s supporters attacked the US Capitol in early 2021, years before she went to work for him and developed an extraordinary close relationship with him, a new report has revealed.
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A series of moves by Donald Trump’s administration to sow doubt in the integrity of US elections has intensified concern among voting experts – and sparked hope among election deniers – that it could declare a national emergency. The White House and US federal agencies have released a string of documents this summer – including disputed analyses of alleged voting by noncitzens and historical intelligence memos – stoking expectations that the US president could move to exert greater control over November’s US midterm elections.
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Iran’s foreign minister has dismissed the threat of a fresh round of US economic sanctions as a “desperate” ploy, even as its president acknowledged that the Iranian people are facing “many problems” amid Washington’s efforts to isolate and debilitate the country’s economy.
