Canada plans to announce retaliatory tariffs on U.S. goods later on Tuesday, following the collapse of trade negotiations with Washington. The move comes after President Donald Trump threatened to raise tariffs on all Canadian cars, trucks and automotive parts to 50% starting January 1, 2027.
The failed agreement would have reduced top-line tariffs on Canadian cars and light-duty trucks from 25% to 15%, while lowering duties on aluminum and steel from 50% to 25%. Disagreements over whether U.S. tariff relief would extend to medium- or heavy-duty trucks contributed to the breakdown.
Trade Minister Dominic LeBlanc told CNBC on Tuesday that Ottawa intends to respond to the U.S. administration’s actions. "We said that if we didn’t get to a deal, we would have to take the steps that any responsible government would take to protect those sectors of the economy," he said. "Our preference was not to do that." LeBlanc declined to specify the scope or scale of the retaliatory measures but indicated an announcement would come later in the day.
