Canada to Announce Retaliatory Tariffs 08/25 06:17

   Canada will announce retaliatory tariffs against the United States on 
Tuesday after relations deteriorated sharply Monday, with President Donald 
Trump telling Canadian leaders to "fall in line" or face consequences "far 
WORSE" than existing tariffs and Prime Minister Mark Carney accusing Washington 
of trying to subordinate Canada.

   TORONTO (AP) -- Canada will announce retaliatory tariffs against the United 
States on Tuesday after relations deteriorated sharply Monday, with President 
Donald Trump telling Canadian leaders to "fall in line" or face consequences 
"far WORSE" than existing tariffs and Prime Minister Mark Carney accusing 
Washington of trying to subordinate Canada.

   Trump also threatened new 50% tariffs on Canadian vehicles, auto parts and 
steel, while Carney said U.S. trade demands showed Washington wanted to 
"destroy our major industries," including autos, steel and aluminum.

   Finance Minister Franois-Philippe Champagne and three other Cabinet 
ministers are also expected Tuesday morning to share details of supports for 
workers affected by tariffs. Carney said earlier Monday that Canada may need to 
move away from matching U.S. tariffs dollar for dollar and instead use more 
targeted retaliation aimed at protecting Canadian workers and businesses.

   "An attitude at the negotiation table that Canada is a subsidiary of the 
United States" is "not something we're going to accept," Carney said.

   Carney was even more blunt in French.

   "We learned during the negotiations that the Americans want to destroy our 
major industries, including autos, steel and aluminum," Carney said. "That was 
one of the main reasons we said no. It was a bad deal."

   The fiery words from both sides show how U.S.-Canada relations have 
deteriorated since Carney walked away from trade negotiations with the Trump 
administration late Friday, triggering the president's threatened 50% tariffs 
the next day on about $20 billion worth of Canadian goods.

   Canada and the United States share one of the world's largest trading 
relationships, with deeply integrated supply chains across autos, energy, 
agriculture and manufacturing, making a prolonged trade fight potentially 
costly for businesses and workers on both sides of the border.

   Carney cast doubt on the U.S.'s dependability, saying Canada was finding 
reliable partners "everywhere in the world, except in the United States. Except 
in the United States. And Russia."

   Trump unleashes personal attacks on Canadian leaders

   On Monday, Trump came back with further tariffs, warning that he would 
impose them on Canada's auto industry beginning next year.

   "Canada has been ripping off the United States of America for years," Trump 
wrote on social media, criticizing what he called the country's "ridiculously 
high tariffs" on American farmers.

   Carney said Washington's auto-sector proposals would gradually have the 
effect of dismantling Canadian production.

   "This is the most successful automotive partnership in history," Carney 
said, referring to the deeply integrated Canada-U.S. industry.

   Meanwhile, Ontario Premier Doug Ford unleashed his own tirade. In an 
interview with The Associated Press, he said Trump had underestimated 
Canadians' willingness to endure economic pain rather than give in to U.S. 
pressure.

   "We're all in," Ford said. "Up here, we're at a fever pitch; everyone's in 
for an economic war. They know they're going to have to sacrifice."

   Trump responded in a social media post by attacking Ford personally, calling 
him "the less charismatic, intelligent, and overall unimpressive brother of the 
late, great, Rob Ford," and once again referring to Canada's prime minister as 
"Governor Carney."

   Ford dismissed the insults: "If you think an insult from him hurts me? Well, 
bring it on, buddy, I'm ready."

   Ford is a Progressive Conservative whose party differs from that of Carney, 
a Liberal, but the two underscore broad political unity in Canada over the 
trade fight with Trump.

   Ford threatens critical minerals and electricity

   Ford said "everything is on the table" if the dispute worsens, including 
cutting off electricity and critical minerals from Ontario.

   Critical minerals are increasingly important to U.S. national security and 
manufacturing. The Pentagon has sought more secure supplies of minerals used in 
military aircraft, missiles, munitions and electronics as Washington tries to 
reduce reliance on China, which dominates the mining or processing of several 
strategically important minerals.

   Ford said Canada should also consider increasingly severe retaliation if 
Trump continues targeting Canadian industries, including oil and potash, while 
Ontario could raise electricity prices or stop sending power south.

   "We power 1.5 million homes and businesses," Ford said. "Everything's on the 
table. I'll do whatever it takes."

   Ford has used electricity as leverage before. During an earlier phase of the 
dispute, Ontario imposed a 25% surcharge on electricity exported to Michigan, 
Minnesota and New York. Trump responded by threatening to double tariffs on 
Canadian steel and aluminum before both sides backed away.

   Auto industry becomes a central battleground

   Ford accused Trump of not simply seeking a better trade deal but aiming to 
hollow out Canadian industries and move production south.

   Ford said Trump wants to make Canada a vassal state.

   "He wants to bleed out every single sector and bring them down to the U.S.," 
Ford said.

   The auto sector is especially important to Ontario, the center of Canada's 
vehicle manufacturing industry. Plants and suppliers in Ontario are tightly 
integrated with factories in Michigan and other U.S. states, with parts 
routinely crossing the border multiple times during production.

   Automakers including Ford, General Motors and Stellantis operate major 
assembly plants in Ontario, and the wider supply chain supports tens of 
thousands of jobs. Trump's new threat of a 50% tariff on Canadian vehicles and 
parts puts that sector directly at the center of the escalating dispute.

   U.S. Trade Representative Jamieson Greer said Monday that "the only reason 
Canada has auto production in the first place" was because of the 1960s Auto 
Pact, under which Canada used access to its market to encourage vehicle 
production north of the border.

   Ford says he opposed preliminary deal

   Ford also disclosed that he had opposed the preliminary agreement Carney was 
considering before Canada walked away from negotiations, and that he was 
unwilling to restore American liquor to Ontario store shelves as part of an 
agreement.

   "I wasn't going to put the booze back on the shelves," Ford said. "I was 
ready to go out there and call a press conference ... and say I'm not buckling 
over."

   Ford said he understood Washington had sought language late in the 
negotiations that would have restricted Canada's ability to negotiate trade 
agreements with other countries without U.S. approval. Carney has called that 
demand unacceptable and a question of Canadian sovereignty.

   Carney said the dispute also exposed a deeper divide over language and 
culture, saying protections for French and Canadian culture that Washington 
views as trade irritants are considered fundamental rights in Canada.

   "Who does he think he is?" Ford said of Trump. "You gotta be kidding."