Canada to announce retaliatory tariffs after Trump warns of 'worse consequences'
Canada is preparing to implement retaliatory tariffs against the United States following the collapse of trade negotiations and escalating threats from President Trump. Prime Minister Mark Carney has signaled a shift toward targeted measures to protect Canadian industries, while both nations trade accusations of unfair economic practices and personal insults.
Why it matters
The breakdown in trade relations between the U.S. and its largest trading partner threatens to disrupt deeply integrated supply chains, particularly in the automotive and steel sectors, with significant implications for the North American economy.
Canada is set to announce retaliatory tariffs against the United States on Tuesday, an official familiar with the plans told news agency The Associated Press, escalating a trade dispute that has sharply deteriorated after negotiations between Ottawa and the Trump administration collapsed.The expected measures come after Canadian Prime Minister Mark Carney said Ottawa may move away from matching US tariffs dollar for dollar and instead adopt more targeted retaliation aimed at shielding Canadian workers and businesses.US President Donald Trump escalated the dispute on Monday, warning Canadian leaders to “fall in line” or face consequences “far WORSE” than tariffs already imposed.
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