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Canada will announce retaliatory tariffs on US

By The Associated Press 2 min read
President Donald Trump speaks during a back to school event in the Rose Garden of the White House, Monday, Aug. 24, 2026, in Washington. (AP Photo/Alex Brandon)

Canada will announce retaliatory tariffs against the United States on Tuesday, an official familiar with the plans told The Associated Press, escalating a trade fight that has sharply worsened since negotiations with the Trump administration collapsed.

The official spoke Monday on condition of anonymity because they were not authorized to discuss the plans publicly.

Prime Minister Mark Carney had said Saturday that retaliation would target sectors including steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics, but he said Monday that Canada may instead use more targeted measures.

President Donald Trump escalated the dispute again Monday, telling Canadian leaders to "fall in line" or face consequences "far WORSE" than tariffs already imposed and threatening new 50% tariffs on Canadian vehicles, auto parts and steel.

Earlier Monday, Carney accused Washington of trying to subordinate Canada and said U.S. trade demands had confirmed Canada's fears that the United States was seeking to dismantle major Canadian industries.

"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.

He said Canada was willing to resume talks when Washington returned with "the right attitude."

Carney was blunter 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 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.

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.

Starting at /week.