Canada plans to announce retaliatory tariffs against the United States on Tuesday. This decision comes after a significant escalation in tensions on Monday, when President Donald Trump urged Canadian leaders to “fall in line” or face consequences that could be “far WORSE” than the current tariffs. In response, Prime Minister Mark Carney accused Washington of attempting to subordinate Canada, highlighting the deteriorating relations between the two nations.
Finance Minister Francois-Philippe Champagne and three other Cabinet ministers are scheduled to unveil Canada’s response Tuesday morning. It was a bad deal.”
Trump also threatened new 50% tariffs on Canadian vehicles, auto parts and steel, while Carney said US trade demands showed Washington wanted to “destroy our major industries,” including autos, steel and aluminum. Carney said earlier Monday that Canada may need to move away from matching US tariffs dollar for dollar and instead use more targeted retaliation aimed at protecting Canadian workers and businesses. “An attitude at the negotiation table that Canada is a subsidiary of the United States” is “not something we’re going to accept,” Carney said. “We learned during the negotiations that the Americans want to destroy our major industries, including autos, steel and aluminum,” Carney said. “That was one of the main reasons we said no.
The fiery words from both sides show how US-Canada relations have deteriorated since Carney walked away from trade negotiations with the Trump administration late Friday, triggering the president’s threatened 50% tariffs the next day on about $20 billion worth of Canadian goods.
Carney said Washington’s auto-sector proposals would gradually have the effect of dismantling Canadian production.
