Trump’s termination of trade negotiations between the US and Canada could affect these prices

2:50 Donald Trump makes a statement on October 23, 2025 in Washington, DC. Alex Wong/Getty Images

Prices for home appliances, cars and auto parts may be affected by President Donald Trump’s decision to end trade talks between the United States. USA and Canada, some trade experts told ABC News.

Trump said he was suspending trade talks with Canada in response to negative television ads about tariffs imposed earlier this month by the Canadian province of Ontario.

“TARIFFS ARE VERY IMPORTANT TO US NATIONAL SECURITY AND ECONOMY. Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE TERMINATED,” Trump wrote on his social media platform.

The ad includes audio excerpts from then-President Ronald Reagan’s 1987 address, in which he imposed some tariffs on Japanese products but warned of the long-term economic risks of high tariffs and the threat of a trade war.

Trump claimed, without evidence, that the ad was intended to influence the outcome of the US Supreme Court’s tariff case, which is due to be heard next month. In a post on X, Ontario Premier Doug Ford called for cooperation between the two countries.

“Canada and the United States are friends, neighbors and allies. President Ronald Reagan knew that we are stronger together. God bless Canada and God bless the United States,” Ford said.

Canadian goods now face a hefty 35% tariff, although many of those exports to the U.S. remain duty-free because the policy excludes products compatible with the United States-Mexico-Canada Agreement, or USMCA, a free trade agreement.

A separate part of Canadian products is subject to sectoral tariffs, for example, a 50% tariff on steel and aluminum.

Canada has sought to reduce or eliminate tariffs on steel and aluminum in trade talks, but the stalling of the talks could leave them in limbo for a long time, experts say. Canada is the largest exporter of steel and aluminum to the United States

Steel and aluminum are found in many products, including appliances, food packaging, cars and auto parts, some experts add.

Steel is the main material by weight in a car, accounting for about 60% of its weight, according to the American Iron and Steel Institute.

Donald Trump meets with Canadian Prime Minister Mark Carney in the Oval Office of the White House in Washington, DC on October 7, 2025. Jim Watson/AFP via Getty Images

When steel imports face tough taxes, the price of steel paid by American producers rises, which means higher costs. costs for automakers, ABC News experts previously reported. They added that these companies would likely raise prices for consumers to offset some of those costs.

Major household appliances such as refrigerators, dishwashers and washing machines rely in part on steel, making them vulnerable to higher prices due to tariffs.

In June, Trump suspended negotiations over Canada’s plans for a digital services tax, which would have levied a 3% tax on American tech companies. Talks resumed days after Canada scrapped plans for the tax.

The U.S. had a $63 billion trade deficit with Canada last year, a slight decrease from the previous year, according to data from the U.S. Trade Office. US Trade Representative. By comparison, the U.S. ran larger trade deficits with its other major trading partners last year: a $295 billion deficit with China and a $171 billion deficit with Mexico.

The U.S. is the destination for about three-quarters of Canadian exports, while such products account for about 11% of U.S. imports.

The list of major Canadian exports to the US also includes crude oil, natural gas and automobiles, although many of these products remain duty-free. accounting for their USMCA compliance.

The USMCA is scheduled for joint review next year, giving countries the opportunity to change the agreement. If Trump’s new frustration affects the outcome of those talks, it could affect the prices of some additional imported goods, such as cars, Tyler Schipper, an economics professor at the University of St. Thomas, told ABC News.

Source: abcnews.go.com