Canada may announce retaliatory tariffs on goods imported from the United States as early as Tuesday, Trade Minister Dominic LeBlanc has said, escalating a growing trade dispute with Washington.
LeBlanc said the Canadian government was considering the measures after US President Donald Trump threatened to raise tariffs on all Canadian cars, trucks and automotive parts to 50 per cent from January 1, 2027.
“I think that’s the government intention,” LeBlanc said in an interview with CNBC when asked when Ottawa could announce the retaliatory tariffs.
He said Canada had warned the US administration that it would take measures to protect affected sectors if the two countries failed to reach a trade agreement.
“It shouldn’t surprise anybody,” LeBlanc said, adding that Ottawa had preferred to resolve the dispute through negotiations rather than impose additional tariffs.
Trump announced the proposed increase on Monday after trade negotiations between the two countries broke down last week.
The proposed deal would have reduced the US tariff on Canadian cars and light-duty trucks from 25 per cent to 15 per cent, while tariffs on Canadian steel and aluminium would have fallen from 50 per cent to 25 per cent.
However, negotiations collapsed on Friday following disagreements over several issues, including whether the proposed tariff relief would cover medium- and heavy-duty trucks.
The latest escalation threatens to disrupt the highly integrated North American automobile industry.
US vehicle manufacturers rely heavily on Canadian-made parts and vehicles, meaning higher tariffs could increase production costs and push up prices for American consumers.
The dispute could also deepen pressure on auto stocks and further strain economic relations between the two neighbours.
LeBlanc said Canada would prefer an agreement but would take action if necessary to protect its economy.
