Canada Set to Hit Back With Retaliatory Tariffs as US Trade War Deepens

Canada is expected to announce retaliatory tariffs against the United States on Tuesday, marking a sharp escalation in the trade dispute between the two allies. The move comes after President Donald Trump imposed 50% tariffs on $20 billion worth of Canadian goods over the weekend, following the breakdown of trade negotiations late Friday.

Prime Minister Mark Carney accused Washington of trying to subordinate Canada, saying the US demands were an attempt to "destroy our major industries," including autos, steel, and aluminum. Finance Minister François-Philippe Champagne and three other cabinet ministers are expected to outline support measures for workers affected by the tariffs.

Carney indicated that Canada may shift away from matching US tariffs dollar-for-dollar, instead adopting more targeted retaliation aimed at protecting Canadian workers and businesses.

President Trump escalated the rhetoric on Tuesday, telling Canadian leaders to "fall in line" and threatening new 50% tariffs on Canadian vehicles, auto parts, and steel. In a social media post, Trump also claimed he was considering renaming Lake Ontario to "Lake America," saying the US doesn't expect to do much business with Ontario anymore. The lake forms part of the US-Canada border near New York state, and Ontario is Canada's most populous province and home to its auto industry.

Trump also disparaged Carney, calling him "Governor Carney" and accusing him of lying about US proposals regarding French language protections. Trump insisted he would never interfere with Canadians speaking French, calling the claim a fabrication by Carney to boost his political standing. Carney had earlier said the US proposed measures that would hurt French language protections.

The escalating dispute marks a significant deterioration in US-Canada relations, with both sides showing little sign of backing down.