Canada is preparing to announce retaliatory tariffs against the United States as tensions between the two countries escalate following the breakdown of trade negotiations with the Trump administration.
According to a report by The Associated Press, an official familiar with the plans said that Canada would unveil the measures on Tuesday.
Canada prepares targeted retaliation
Prime Minister Mark Carney said Ottawa may move away from matching US tariffs dollar-for-dollar and instead impose targeted measures designed to protect Canadian workers and businesses.
The move follows President Donald Trump's decision to threaten additional 50% tariffs on Canadian vehicles, auto parts and steel. Trump has also warned Canada against resisting US demands, saying it could face consequences worse than the tariffs already imposed.
Carney has strongly rejected the US approach, arguing that Washington's demands could undermine key Canadian industries. He said Canada would not accept being treated as a subsidiary of the United States.
The dispute intensified after Carney ended trade negotiations with the Trump administration late Friday. Trump subsequently threatened tariffs on around $20 billion worth of Canadian goods.
Auto industry becomes key flashpoint
Canada's automotive sector has emerged as one of the biggest areas of concern. Carney warned that US proposals could gradually weaken Canada's deeply integrated auto manufacturing industry.
Ontario Premier Doug Ford has also backed a tougher response, saying Canadians are prepared to withstand economic pressure rather than accept US demands. He described the situation as an "economic war" and said Canada was ready to defend its interests.
Trump has responded with personal criticism of both Carney and Ford, further deepening tensions.
Despite political differences between Carney's Liberal government and Ford's Progressive Conservative administration, the trade dispute has generated broad support in Canada for resisting US pressure.
