President Donald Trump on Monday threatened to raise U.S. tariffs on all cars, ​trucks and automotive parts from Canada to 50% starting January 1, 2027, escalating a trade fight after negotiations collapsed last week.

The trade deal on the table ‌would have cut the top-line tariff rate on Canadian cars and light-duty trucks from 25% to 15% and the tariffs on aluminum and steel from 50% to 25%, but the deal fell apart on Friday over a number of points of contention, including whether the U.S. tariff relief would have applied to medium- or heavy-duty trucks.

The escalation threatens to disrupt one of the world’s most integrated auto supply chains. U.S. auto ​production is heavily reliant on Canadian-made parts and vehicles, and higher tariffs could raise costs for American automakers and consumers while deepening a trade standoff that has already ​weighed on auto stocks.

“Build in the U.S. and there are ZERO TARIFFS. Canada will be treated like a State no longer!” Trump wrote in ⁠a social media post.

Trump wants Canada to come to the table and negotiate in good faith, U.S. Treasury Secretary Scott Bessent told reporters on Monday.