Saudi Gazette WorldSAtradeAug 25, 2026, 4:17 AMImpact 40.92

US-Canada trade war heats up as Carney vows retaliatory tariffs

TORONTO — Canada said it 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.Trump also threatened new 50 percent tariffs on Canadian vehicles, auto parts and steel as of 1 January, while Prime Minister Mark Carney said US trade demands showed Washington wanted to “destroy our major industries,” including autos, steel and aluminum.Late on Monday, Canada officials announced a news conference on Tuesday where they would outline how the country would respond to the trade war and work to "protect and support Canadian workers and businesses during these challenging times".Earlier in the day, Carney called Trump's latest levy threat unsurprising and accused the president of wanting to destroy Canada's auto industry. He added that Canada is ready to resume talks only if the US comes with the "right attitude".The war of words followed several US and Canadian officials saying that talks were suspended with no set date to resume.Canada walked away from trade negotiations late on Friday night, moments befo