Politics · India Bureau
Canada set to impose retaliatory tariffs as US trade tensions escalate
Canada is preparing to announce retaliatory tariffs against the United States on Tuesday as a bitter trade dispute intensifies following the collapse of negotiations with the Trump administration. Prime Minister Mark Carney has signalled Ottawa may shift strategy to employ more targeted measures rather than matching US tariffs dollar-for-dollar.
LSN India ·
The Canadian government plans to unveil its tariff response as President Donald Trump continues to ratchet up pressure on its northern neighbour. An official privy to the decision confirmed the announcement but requested anonymity, citing the sensitivity of ongoing discussions.
Trump escalated the dispute on Monday by demanding Canadian leaders "fall in line" and warning of consequences potentially "far WORSE" than existing tariffs. The US president has threatened additional 50 per cent tariffs on Canadian vehicles, auto parts, and steel—sectors critical to Canada's economy.
Canadian Prime Minister Carney indicated the country would move away from a direct tit-for-tat tariff approach. "We need to be more strategic and targeted in our response, protecting Canadian workers and businesses," sources familiar with his statements said. Carney also accused the United States of attempting to subordinate Canada and said Washington's demands have confirmed concerns about efforts to dismantle major Canadian industries.
The confrontation marks a significant deterioration in bilateral trade relations following the breakdown of formal negotiations between Ottawa and the Trump administration. Canada's planned measures are expected to target specific American sectors and products in a calibrated response designed to minimise domestic economic damage while demonstrating resolve.