Canada To Announce Retaliatory Tariffs Against US On Tuesday After Trump Threatens Leaders To 'Fall In Line'

(MENAFN- Live Mint) Canada is set to announce retaliatory tariffs against the United States on Tuesday (local time) after ties between the once long-standing allies deteriorated sharply on Monday, when US President Donald Trump told Canadian leaders to "fall in line" or face consequences "far WORSE" than existing tariffs.

According to AP, Canadian Prime Minister Mark Carney accused the US of trying to subordinate Ottawa, saying Washington's trade demands showed that it wanted to "destroy our major industries,” including autos, steel and aluminum. His remarks came after the Republican president threatened new 50 per cent tariffs on Canadian vehicles, auto parts and steel.

On Tuesday morning, Finance Minister François-Philippe Champagne and three other Cabinet ministers are set to announce Canada's response.

Quick answers to key questions

.5 QUESTIONS1What are the retaliatory tariffs Canada is planning against the US?⌵

Canada plans to announce retaliatory tariffs against the US, targeting a range of products including steel, autos, and aluminum, scheduled to take effect on September 8.

2Why did Canada decide to impose retaliatory tariffs on US goods?⌵

Canada's decision to impose retaliatory tariffs comes as a response to US President Trump's threat of new tariffs that Canada views as attempts to undermine its industries and sovereignty.

3How do the new US tariffs affect Canadian exports?⌵

The US tariffs, which may reach 50%, significantly impact Canadian exports, specifically targeting key sectors such as automobiles, trucks, and steel, potentially harming around $20 billion worth of trade.

4Should Canadian businesses prepare for an economic impact due to these tariffs?⌵

Yes, Canadian businesses should prepare for potential economic impacts as the escalating tariffs will likely lead to increased costs and trade volatility in affected sectors.

5What were the reasons behind the breakdown of US-Canada trade negotiations?⌵

The trade negotiations between the US and Canada broke down due to last-minute demands from the US that Canada deemed unacceptable, leading to an impasse in reaching a mutually beneficial deal.

A day earlier, Carney said Canada should move away from matching Trump's tariffs“dollar for dollar” and instead adopt more targeted measures to protect Canadian workers and businesses. He noted, "An attitude at the negotiation table that Canada is a subsidiary of the United States” is“not something we're going to accept," and added, "We learned during the negotiations that the Americans want to destroy our major industries, including autos, steel and aluminum."

He also described the US demands as one of the main reasons Canada walked away from the trade deal after weeks of negotiations, calling it a "bad deal."

This copy will be updated with additional details.

MENAFN24082026007365015876ID1111581325