Canada to announce retaliatory tariffs as Trump tells its leaders to ‘fall in line’

Canada will announce retaliatory tariffs against the United States on Tuesday after relations deteriorated sharply Monday

TORONTO -- Canada will announce retaliatory tariffs against the United States on Tuesday after relations deteriorated sharply Monday, with President Donald Trump telling Canadian leaders to “fall in line” or face consequences “far WORSE” than existing tariffs and Prime Minister Mark Carney accusing Washington of trying to subordinate Canada.

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

Finance Minister François-Philippe Champagne and three other Cabinet ministers are also expected Tuesday morning to share details of supports for workers affected by tariffs. Carney said earlier Monday that Canada may need to move away from matching U.S. 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.

“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 U.S.-Canada relations have deteriorated since Carney walked away from trade negotiations with the Trump administration late Friday, triggering the president’s threatened 50% tariffs the next day on about $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 U.S.’s dependability, saying Canada was finding reliable partners “everywhere in the world, except in the United States. Except in the United States. And Russia.”

On Monday, Trump came back with further tariffs, warning that he would impose them on Canada's auto industry beginning next year.

“Canada has been ripping off the United States of America for years,” Trump wrote on social media, criticizing what he called the country’s “ridiculously high tariffs” on American farmers.

Carney said Washington’s auto-sector proposals would gradually have the effect of dismantling Canadian production.

“This is the most successful automotive partnership in history,” Carney said, referring to the deeply integrated Canada-U.S. industry.

Meanwhile, Ontario Premier Doug Ford unleashed his own tirade. In an interview with The Associated Press, he said Trump had underestimated Canadians’ willingness to endure economic pain rather than give in to U.S. pressure.