Canada will announce retaliatory measures against Trump's latest tariffs, further escalating the US-Canada trade war.

BlockBeats News, August 25th. The Canadian government will announce a retaliatory plan against the latest U.S. tariff measures on Tuesday local time. The Canadian Minister of Finance and other senior officials will hold a press conference in Ottawa. Previously, the U.S. imposed a 50% tariff on a large number of Canadian goods starting on Saturday, following the breakdown of trade negotiations between the two countries.

Canadian Prime Minister Mark Carney had previously stated that Canada was prepared to retaliate in a "tit-for-tat" manner, but on Monday, he indicated that considering the much larger size of the U.S. economy compared to Canada, the final plan might involve more targeted measures rather than a blanket tariff increase. Carney stated that the conditions proposed by the U.S. in the final stages of the negotiations were "unfair and not in line with economic interests."

Meanwhile, the rhetoric between the U.S. and Canada continues to escalate. Ontario Premier Doug Ford openly criticized Trump, who in turn warned that if Canada does not "comply," it will face "worse consequences." Trump further escalated his language on Tuesday, even threatening to rename Lake Ontario to "Lake America."

The market is monitoring the specific scope of Canada's retaliatory measures this time, especially in the automobile, steel, aluminum, and other core trade sectors. If both sides continue to expand the coverage of tariffs, U.S.-Canada trade relations may deteriorate further, increasing pressure on the North American supply chain and inflation.