Canada to Announce US Retaliatory
- Canada is set to announce retaliatory tariffs against the US on Tuesday, confirmed by a government official familiar with the plans.
- Prime Minister Carney broke off trade negotiations on Friday, prompting Trump to threaten 50% tariffs on Canadian vehicles, auto parts, and steel worth roughly $20 billion.
- Ontario Premier Doug Ford warned that restrictions on electricity and raw material exports to the US remain an option if the dispute escalates further.
Canada is expected to announce retaliatory tariffs against the United States on Tuesday, according to a government official familiar with the plans, as the trade dispute between the two countries deepens significantly following the collapse of negotiations late last week.
Ottawa prepares its response
Finance Minister François-Philippe Champagne and three other cabinet members are due to set out the measures on Tuesday morning local time. Prime Minister Mark Carney made clear that Ottawa would not yield to American pressure. "A stance at the negotiating table that Canada is a subsidiary of the United States, we will not accept," he said.
Carney accused Washington of seeking to "destroy" Canada's most important industries, citing the automotive, steel, and aluminium sectors in particular. He described the negotiations — which he walked away from on Friday — as a "bad deal" and said their collapse was "one of the main reasons we said no."
Trump escalates threats
President Donald Trump ratcheted up the pressure on Monday, calling on Canada to "subordinate itself" or face consequences he described as "far worse" than tariffs already in force. He threatened additional 50 per cent levies on Canadian vehicles, auto parts, and steel. Trump also alleged on social media that "Canada has been ripping off the United States of America for years," criticising what he characterised as "ridiculously high" Canadian tariffs on American agricultural products — claims Ottawa has not acknowledged.
Trump had previously announced 50 per cent tariffs on Canadian goods worth roughly $20 billion following the breakdown of talks. He also directed personal criticism at Ontario Premier Doug Ford, describing him in dismissive terms and referring to Carney once again as "Governor Carney" — a pointed reference to his repeated suggestion that Canada should become the 51st US state.
Ontario threatens energy leverage
Ford firmly rejected Trump's attacks and signalled that Ontario could restrict electricity and raw material supplies to the United States should the dispute escalate further. "We supply electricity to 1.5 million households and businesses," he said. "Everything is on the table. I will do whatever is necessary." Ford, a Progressive Conservative, and Carney, a Liberal, represent the broad cross-party unity Canada has maintained throughout the dispute.
The precise scope and targets of Tuesday's retaliatory measures remained unconfirmed at the time of publication. The tit-for-tat tariff cycle has now drawn in multiple sectors on both sides, raising the prospect of sustained economic disruption across one of the world's largest bilateral trading relationships.
