OTTAWA — The Canadian federal government is set to announce details of its retaliatory tariffs against the United States on Tuesday, as the latest escalation in the Canada-U.S. trade dispute continues to put pressure on businesses and communities on both sides of the border.
Finance Minister François-Philippe Champagne, Industry Minister Mélanie Joly, Jobs Minister Patty Hajdu and Artificial Intelligence Minister Evan Solomon are also expected to outline support measures for workers affected by the tariffs. Solomon is also responsible for the Federal Economic Development Agency for Southern Ontario.
Prime Minister Mark Carney said Saturday that Canada’s retaliation, in the form of dollar-for-dollar tariffs, would take effect on September 8. He said Monday that discussions were still underway over the precise form of Canada’s response.
Carney is not expected to attend Tuesday’s announcement, according to his public itinerary.
The latest development follows Carney’s decision Friday to suspend trade negotiations with Washington. The prime minister accused the United States of introducing last-minute demands that could restrict Canada’s ability to negotiate trade agreements with other countries and protect its culture and sovereignty.
The United States introduced a new round of 50% tariffs on Canadian exports on Saturday, affecting goods worth approximately $28 billion.
Carney said Canada would return to negotiations once Washington changed its approach and stopped treating Canada as a subsidiary.
At a news conference in Lévis, Que., on Monday, Carney also announced an $11 billion contract to build six new icebreakers for the Canadian Coast Guard, emphasizing that the vessels would be constructed using Canadian steel.
“When the Americans go to the negotiation table first, with the right attitude toward our industries and a true partnership, of course we’ll come to the negotiating table,” Carney told reporters.
Energy and industrial sectors in focus
The trade dispute has increasingly expanded beyond individual products, with energy and industrial supply chains becoming central to the confrontation.
U.S. President Donald Trump escalated his rhetoric Monday by threatening on social media to raise tariffs on Canadian vehicles, auto parts and steel to 50% on January 1. He also threatened Canadian energy supplies transported through the United States.
Trump argued that the United States does not need Canada, while Canada remains heavily connected to the U.S. market.
Canada is the largest source of energy imported by the United States. It also supplies approximately 90% of the potash used by the U.S. agricultural sector and as much as one-third of the uranium used by American nuclear power plants.
Trump claimed that Canada relies on the United States for 95% of its exports. Canadian data, however, shows that exports to the U.S. accounted for 72% of total Canadian exports in 2025, down four percentage points from the previous year.
During the first six months of 2026, that share fell further to 68%, while exports to markets outside the United States increased as Canada continued efforts to diversify its trade.
The latest escalation also followed comments from Ontario Premier Doug Ford, who called for Ontario to use its energy and critical-mineral resources as leverage in negotiations.
Auto industry warns of tariff consequences
The automotive sector is also watching the dispute closely.
Flavio Volpe, president of the Automotive Parts Manufacturers’ Association of Canada, said a threatened U.S. tariff on Canadian auto parts would ultimately affect American vehicle manufacturers because U.S. assembly plants rely on Canadian components.
“The ‘importer of record’ pays the tariffs,” Volpe said, arguing that U.S. auto assembly operations would bear the cost of tariffs on Canadian parts and could face disruptions if specific components became unavailable.
The latest U.S. tariffs are already affecting dozens, potentially hundreds, of smaller Canadian businesses, including honey producers, hockey-stick manufacturers and flower-bulb growers.
The situation changed rapidly after Trump said on August 18 that the two countries had reached a “deal” and announced a pause while the agreement was put into writing. By Friday, however, Carney had suspended negotiations and recalled Canadian negotiators, saying Washington had changed the terms and made unreasonable demands.
Political pressure grows in Ottawa
The breakdown in negotiations has also prompted calls from Canada’s opposition leaders for greater transparency.
Conservative Leader Pierre Poilievre asked Carney to reconvene Parliament and release the text of the agreement that fell apart, arguing that Canadians should be able to see the proposed terms and understand the options available to the government.
He also called for greater clarity on the potential impact of Canada’s trade and economic policies on consumer prices, including groceries and fuel.
Bloc Québécois Leader Yves-François Blanchet called on Carney to consult other party leaders and said Canada could consider measures including suspending purchases of F-35 fighter jets from the United States and restoring a digital services tax on large technology companies.
With Ottawa preparing its retaliatory measures, Canadian businesses and supply chains now face continued uncertainty as the government works to respond to the latest U.S. tariffs while maintaining access to international markets.
