Canada to hit back with retaliatory tariffs Tuesday in US trade fight

Canada plans to impose retaliatory tariffs on Tuesday in the escalating trade dispute with the United States, following President Donald Trump's announcement of 50 percent tariffs on Canadian vehicles. Business groups in both countries are urging a return to negotiations, warning that new tariffs could raise costs for US companies and consumers, disrupt supply chains, and strain bilateral economic ties. Canada has pledged "dollar for dollar" counter-tariffs on US goods. Trump temporarily suspended the 50 percent tariffs for three days after Canada agreed to talks, averting duties on approximately $20 billion in Canadian goods. Key disputes include existing 25 percent tariffs on Canadian vehicles and the calculation basis for further reductions.