Canada set to announce response to Trump tariffs as trade war with US escalates

Canada is poised to announce its response to President Donald Trump's new tariffs as a trade war with the United States intensifies. The Canadian government announced that ministers of finance, industry, labor and other officials will hold a press conference in Ottawa to detail the country's answer to the new levies. Canada and the United States failed to reach a deal to avert new 50% US tariffs on select Canadian goods after weeks of talks.

The duties took effect on Saturday, and Ottawa laid out plans for retaliation. Trump later announced that he would double tariffs on Canadian autos starting next year to 50% for non-US content. Canada's Prime Minister Mark Carney announced retaliatory tariffs effective September 8, targeting US steel and dairy industries, as well as sectors like agricultural equipment, paper and electronics.

Carney stated that the goal of trade talks was to get the best deal for Canadians, not a deal at any price or on any time frame. The Canadian government emphasized that building domestically and diversifying trade abroad was their plan from the start. The United States is Canada's biggest trading partner, with Canadian exports to the US representing 70% of the country's total exports.

In response to the tariffs, Ontario Premier Doug Ford criticized Trump's threat on autos and hinted at an electricity surcharge. Despite opposition, three-quarters of Canadians support Carney's decision to walk away from trade talks, although roughly 40% express concern about job security.