Canada readies retaliatory tariffs after Trump's warningCanada is set to announce retaliatory tariffs against the United States on Tuesday, an official familiar with the plans told news agency The Associated Press, escalating a trade dispute that has sharply deteriorated after negotiations between Ottawa and the Trump administration collapsed. The expected measures come after Canadian Prime Minister Mark Carney said Ottawa may move away from matching US tariffs dollar for dollar and instead adopt more targeted retaliation aimed at shielding Canadian workers and businesses.

US President Donald Trump escalated the dispute on Monday, warning Canadian leaders to “fall in line” or face consequences “far WORSE” than tariffs already imposed. Trump also threatened new 50% tariffs on Canadian vehicles, auto parts and steel.

“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 aluminium,” Carney said.

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

The latest escalation follows Carney’s decision late Friday to walk away from trade negotiations with the Trump administration. Trump subsequently threatened 50% tariffs on about $20 billion worth of Canadian goods.

Carney also questioned the reliability of the US as a trading partner, saying Canada was finding reliable partners “everywhere in the world, except in the United States. Except in the United States.

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

“We're all in,” Ford said. “Up here, we're at a fever pitch; everyone's in for an economic war.

They know they're going to have to sacrifice.” Trump responded by personally attacking Ford, calling him “the less charismatic, intelligent, and overall unimpressive brother of the late, great, Rob Ford,” while again referring to Canada’s prime minister as “Governor Carney.”

Ford dismissed the remarks, saying: “If you think an insult from him hurts me? Well, bring it on, buddy, I'm ready.”

Despite political differences between Carney’s Liberal Party and Ford’s Progressive Conservatives, both leaders have stressed opposition to Trump’s trade pressure. Ontario previously imposed a 25% surcharge on electricity exported to Michigan, Minnesota and New York during an earlier phase of the trade dispute.