Canada to announce retaliatory tariffs on US Tuesday as trade war escalates
Canada will announce retaliatory tariffs against the United States on Tuesday, a source said, escalating a trade war after negotiations with the Trump administration collapsed. Prime Minister Mark Carney signaled a shift toward targeted countermeasures rather than dollar-for-dollar matching. President Donald Trump threatened new 50% tariffs on Canadian vehicles, auto parts and steel, telling leaders to "fall in line" or face worse consequences. Carney accused Washington of seeking to dismantle major Canadian industries, including autos, steel and aluminum, calling the U.S. demands unacceptable. Ontario Premier Doug Ford said "everything is on the table," including cutting electricity and critical minerals exports, while dismissing Trump's personal attacks. The auto sector, deeply integrated across the border, has become the central battleground in the dispute.