Canada expected to announce retaliatory tariffs Tuesday

Canada is expected to unveil retaliatory tariffs on the U.S. on Tuesday, following President Trump’s new threats to escalate the trade war between the two countries.

Canadian Prime Minister Mark Carney announced his country would match U.S. tariffs “ dollar for dollar ” after the Trump administration’s 50 percent tariffs on more than $20 billion worth of Canadian goods went into effect on Saturday. These retaliatory import taxes would go into effect on Sept. 8.

However, the Canadian leader said Monday the country may need to use more targeted retaliation to safeguard its workers and businesses after Trump threatened new 50 percent tariffs on cars, trucks, auto parts and steel that would take effect on New Year’s Day.

The president accused Canada of “ripping off the United States of America for years” in a Truth Social post.

“On Trade, and in other ways, also, they are among the worst Nations in the World to deal with,” he wrote. “They feel entitled, and yet, WE DON’T NEED CANADA, THEY NEED US! They do 95% of their business with the U.S., with us, the exact opposite!”

Carney, who pulled his country’s negotiators at the last minute from trade talks with the U.S. last Friday, accused the Trump administration of treating Canada as “a subsidiary of the United States” during trade discussions.

Ontario Premier Doug Ford reiterated his previous threat to cut the province’s power exports to the U.S. in response to escalating tensions between the two countries on Monday. The province’s power grid directly connects to Michigan, New York and Minnesota.

“We power 1.5 million homes and businesses. Everything’s on the table. I’ll do whatever it takes,” he said during a press conference.

Trump lashed out at Ford and Carney in response, accusing the prime minister and “Flunky Ford” of “bad leadership.”

The president, who has repeatedly suggested Canada could be added as a “51st state,” said in a Truth Social post Tuesday morning that his administration was “giving serious consideration” to renaming Lake Ontario to “Lake America.”

But, the president added, he does not expect to be “doing much business with Ontario any longer.”