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Canada set to announce retaliatory tariffs against US

Aug 25, 2026, 7:17am EDT
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ArcelorMittal steel plant in Ontario, Canada.
Carlos Osorio/Reuters

Canada is set to unveil retaliatory measures against the US in an expanding trade war between the erstwhile allies.

US President Donald Trump yesterday threatened 50% tariffs on Canada’s auto and steel sectors, demanding Ottawa “fall in line”; his northern neighbor appears set on fighting back, with Canadian Prime Minister Mark Carney arguing that “the Americans want to destroy our major industries.”

Trump’s offensive against a once-close ally has international and domestic implications: China’s Global Times propaganda outlet lauded Canada’s “Chinese-styled counterattack” at a time when Ottawa-Beijing ties are warming, while in the US, tariffs on Canadian goods could complicate efforts by Trump’s Republican party to win three states key to it maintaining control of the Senate in the midterms.

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