Canada will announce retaliatory tariffs against U.S. on Tuesday, official tells AP

TORONTO (AP) — Canada will announce retaliatory tariffs against the United States on Tuesday, an official familiar with the plans told The Associated Press, escalating a trade fight that has sharply worsened since negotiations with the Trump administration collapsed.

READ MORE: Trump issues new threats to Canada as trade war escalates

The official spoke on condition of anonymity because they were not authorized to discuss the plans publicly.

Prime Minister Mark Carney said 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.

President Donald Trump escalated the dispute again Monday, telling Canadian leaders to "fall in line" or face consequences "far WORSE" than tariffs already imposed and threatening new 50% tariffs on Canadian vehicles, auto parts and steel.

Carney accused Washington of trying to subordinate Canada and said U.S. trade demands had confirmed Canada's fears that the United States was seeking to dismantle major Canadian industries.

"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.

Carney cast doubt on the U.S.'s reliability as a partner, 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.

READ MORE: Canada should be ready to cut electricity, critical minerals, Ontario's premier says

"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.