Canada will announce retaliatory tariffs against the United States on Tuesday after relations deteriorated sharply Monday, with US President Donald Trump telling Canadian leaders to “fall in line” or face consequences “far WORSE” than existing tariffs.

Trump also threatened new 50 percent tariffs on Canadian vehicles, auto parts and steel, while Carney said US trade demands showed Washington wanted to “destroy our major industries,” including autos, steel and aluminum.

Canadian Finance Minister François-Philippe Champagne and three other ministers are also expected Tuesday morning to share details of supports for workers affected by the tariffs.

Carney said earlier on Monday that Canada may need to move away from matching US tariffs dollar for dollar and instead use more targeted retaliation aimed at protecting Canadian workers and businesses.

“An attitude at the negotiation table that Canada is a subsidiary of the United States” is “not something we’re going to accept,” Carney said.

Carney was even more blunt in French.

“We learned during the negotiations that the Americans want to destroy our major industries, including autos, steel and aluminum,” Carney said.

“That was one of the main reasons we said no. It was a bad deal.”

The fiery words from both sides show how US-Canada relations have deteriorated since Carney walked away from trade negotiations with the Trump administration late Friday, triggering the president’s threatened 50 percent tariffs the next day on about US$20 billion worth of Canadian goods.

Canada and the United States share one of the world’s largest trading relationships, with deeply integrated supply chains across autos, energy, agriculture and manufacturing, making a prolonged trade fight potentially costly for businesses and workers on both sides of the border.

Carney cast doubt on the US’s dependability, saying Canada was finding reliable partners “everywhere in the world, except in the United States. Except in the United States. And Russia.” (AP)



Edited by Tony Sabine