Add The New York Post on Google WASHINGTON — Canada is poised to roll out a batch of retaliatory tariffs in response to President Trump’s 50% duty on $20 billion worth of goods after trade talks between the two North American neighbors broke down last week.
Canadian Prime Minister Mark Carney, who described his country as being “at war” with Trump on trade, vowed to meet the president’s tariffs “dollar for dollar” with retaliatory duties that would take effect on Sept. 8.
Carney, however, has also indicated that Canada may take a more targeted approach.
Meanwhile, Ontario Premier Doug Ford, who runs Canada’s most populous province, has threatened to cut off electricity and critical minerals from the US in a bid to make the trade dispute as politically painful for Washington as possible.
“We power 1.5 million homes and businesses,” Ford declared in an interview with the Associated Press. “Everything’s on the table. I’ll do whatever it takes.”
Critical minerals are important for US national security and manufacturing. In particular, the Pentagon has sought more secure sources of minerals used in military aircraft, missiles, munitions and electronics as the US tries to reduce reliance on China.
Trump ripped into Ford in response and floated the possibility of renaming Lake Ontario “Lake of America.”
The expected rollout of Canada’s retaliatory tariffs comes as Republicans grapple with crucial Senate races in Michigan, Maine, Ohio, and Alaska, all of which have significant trade with Canada.
Some Republicans in those contests, such as Sen. Susan Collins (R-Maine), have expressed concerns about the escalating trade war with Canada so close to the midterm elections.
The Trump administration warned that the US will respond to any retaliatory tariffs Canada unveils. The president has demanded Canada “fall in line” or face repercussions “far WORSE” than the current duties.
On Monday, President Trump threatened to impose 50% new tariffs on auto parts, cars, trucks, and steel imports from Canada, effective on Jan. 1, 2027.
“Canada has been ripping off the United States of America for years,” the president vented on Truth Social Monday.
“Their ridiculously high tariffs on our Farmers and farm products has made life impossible for these great American Patriots, and has long created a 60 Billion Dollar Deficit between our two Countries.”
The president underscored how trade-dependent Canada is on the US and vowed that America’s northern neighbor will no longer “be treated like a State.”
Carney has framed the trade war as an assault on Canada’s sovereignty and accused Trump of wanting to make Ottawa subservient to the US.
“We learned during the negotiations that the Americans want to destroy our major industries, including autos, steel and aluminum,” Carney said in French, per the Associated Press. “That was one of the main reasons we said no. It was a bad deal.”
Canada is America’s second-largest trading partner overall after Mexico.
The two sides had been nearing a deal last week, but it broke down at the 11th hour. Carney blamed the collapse of talks on late asks from the Trump administration and insinuated that Washington’s negotiators weren’t all on the same page.
Carney also raised concerns about medium- and heavy-duty trucks being excluded from tariff relief on autos and suggested that the US made demands regarding the use of the French language in Quebec, over concerns that cultural barriers undermine American trading posture there.
“I would never interfere with Canadians speaking French!” Trump posted on Truth Social. “In fact, I have never even thought of doing such a stupid thing. This lie was made up by a weak and ineffective Prime Minister in an attempt to gain political support, which he has totally lost, from the people of Quebec.”
Complicating Trump’s negotiations with Canada is the loss of his favorite tariff tool — the International Emergency Economic Powers Act (IEEPA) — which he used early on in his second term to impose customized duties on countries at will.
The Supreme Court nixed the IEEPA tariffs in February.
To impose tariffs on Canada, Trump has been using Section 338 of the Tariff Act of 1930, which has far less flexibility than IEEPA but allows him to hit countries that discriminate against US products or services.
Canadian goods targeted by Trump’s latest tariffs include beer, cheese, electronics, and more.
