Canada announces $20bn retaliatory tariffs as US trade war escalates

Canada is set to unveil retaliatory tariffs against the United States as the trade conflict between the two nations escalates following the collapse of trade talks with the Trump administration. According to an AP report, officials familiar with the plans confirmed that Canada would announce the measures on Tuesday. Prime Minister Mark Carney hinted that Ottawa may not simply match US tariffs dollar-for-dollar, but instead target measures specifically aimed at safeguarding Canadian workers and businesses. Carney blamed unfair last-minute terms of the trade negotiations for triggering the move.

The escalation comes after President Trump threatened to impose an additional 50% tariff on Canadian vehicles, auto parts, and steel. He warned that Canada could face consequences worse than the existing tariffs if it resisted US demands. Carney strongly rejected the US approach, emphasizing that Washington's demands threatened vital Canadian industries. He made it clear that Canada would not be treated as a mere subsidiary of the United States.

The dispute flared up when Carney ended trade talks with the Trump administration late Friday, after which Trump announced plans to impose tariffs on approximately $20 billion worth of Canadian goods. The automotive industry has become a focal point in the dispute, with Carney expressing concern that US proposals could gradually erode Canada's closely intertwined auto manufacturing sector.

Ontario Premier Doug Ford, a staunch supporter of a tougher stance, declared that Canadians were ready to endure economic pressure rather than submit to US demands. He called the situation an "economic war" and vowed that Canada was prepared to defend its interests.

Despite the political divide between Carney's Liberal government and Ford's Progressive Conservative administration, the trade dispute has garnered broad support in Canada for resisting US pressure.