Canada is set to unveil retaliatory tariffs against the United States on Tuesday, according to multiple sources briefed on the plan, marking Ottawa's most concrete response yet to a trade dispute that has collapsed into open hostility between Washington and its northern neighbor.
Four federal ministers, including Finance Minister François-Philippe Champagne and Jobs Minister Patty Hajdu, are expected to announce the countermeasures Tuesday morning, with provincial premiers briefed the same day. The government is also expected to expand Employment Insurance access for workers whose jobs are affected by the tariff fight, according to Canadian broadcasters.
Fifty percent duties took effect Saturday
The announcement follows the collapse of trade talks last week and the imposition of 50 percent U.S. tariffs on roughly $28 billion worth of Canadian exports, which took effect Saturday after negotiations broke down over automotive duties, streaming-content rules and limits on Canada's ability to strike independent trade deals with other countries. Prime Minister Mark Carney had pledged "dollar for dollar" retaliation, calling Washington's terms a "bad deal" for Canadian industry.
The dispute has taken an unusually personal turn. Ontario Premier Doug Ford said Trump could "kiss my ass" after the president threatened to raise tariffs on cars, trucks and auto parts to 50 percent starting January 1, 2027 — a threat that laid out the automotive escalation in detail when it was first made Monday. Trump responded by calling Ford "the less charismatic, intelligent and overall unimpressive brother of the late, great, Rob Ford," referring to Doug Ford's late brother, the former Toronto mayor. Ford, in turn, dismissed Trump as "the king of bankruptcies" and floated tripling export charges on Canadian oil, potash and uranium, and has separately raised the idea of curbing electricity exports to the U.S. as leverage.
Ford has also written to Carney urging tariffs targeting eight U.S. states — Alabama, Arkansas, Florida, Iowa, Missouri, Montana, Texas and Wisconsin — that he described as politically significant to the current administration's base, according to a letter reported by Newsweek. It is not yet clear whether Tuesday's federal announcement will adopt that state-by-state approach or a broader package.
The two governments had been negotiating for months toward a renewed trade arrangement before talks broke down late last week. Canadian officials say Tuesday's measures are intended to be proportionate to the U.S. duties rather than an escalation, though the exact products and tariff rates had not been disclosed as of Monday night, according to reporting on the planned announcement.
The fight is being watched closely by industries on both sides of the border that rely on integrated supply chains, particularly in autos and steel, and by other U.S. trading partners weighing how Washington's tariff approach with one of its closest allies might shape future negotiations.
