Canada Promises Retaliatory Tariffs if Trump Intensifies Trade War

Canada pledged to hit back with counter-tariffs should President Donald Trump impose further duties on Canadian products as part of his anticipated rollout of extensive measures. new tariffs on Wednesday.

Should further actions be taken, we will respond accordingly," said Canadian Prime Minister Mark Carney to journalists on Tuesday. "If more measures are imposed on Canada tomorrow, we will implement countermeasures.

Moments later, when addressing journalists, White House press secretary Karoline Leavitt reaffirmed Trump's intention to declare extensive new tariffs on April 2nd, a date he refers to as "liberation day."

Our nation has maintained one of the most open economic environments globally, and we boast an exceptional customer base," stated Leavitt. "However, numerous foreign nations keep their markets inaccessible to our products.

Sources informed ABC News that the Trump administration is considering various policy choices before making an official statement. A potential plan involves introducing a uniform 20% tax on all imported goods, whereas another strategy suggests applying varying tariffs based on the specific trade barriers set by individual countries against American exports, according to these sources.

Government representatives have likewise made statements regarding their intention to concentrate on levying tariffs on approximately 15% of nations that maintain the biggest trade deficits with the United States.

The exact specifics haven't been finalized yet, according to the sources. Leavitt informed journalists on Tuesday afternoon that Trump was refining the policy to ensure "this becomes an impeccable deal for both the American people and the American workers."

FURTHER: Experts warn that Trump's tariffs might trigger a recession. This is how it could happen.

When queried about whether Trump would consider discussions with targeted nations regarding the tariffs, Leavitt stated, "The president is always willing to answer calls."

As Canada prepares possible reciprocal tariffs, the U.S. Senate is anticipated to vote on Wednesday on legislation that might repeal the emergency proclamation President Trump used to justify imposing tariffs on Canada.

A proposal introduced by Senator Tim Kaine from Virginia has the potential to overturn President Trump’s tariffs on Canada. Should this legislation be approved by the Senate, it must also secure a simple majority in the GOP-led House of Representatives.

On Tuesday, Trump strongly denounced the proposal, encouraging Senators to reject it.

"Progress is being made to combat this devastating Fentanyl crisis; however, Republicans in the Senate must support maintaining the national emergency," Trump stated in a post on Truth Social.

From September onwards, almost all of the fentanyl intercepted by the U.S. has been seized at the Southern border with Mexico, as reported by U.S. Customs and Border Protection (CBP). Only less than 1% of this fentanyl was confiscated at the Northern border with Canada, according to CBP findings.

Last month, the Trump administration introduced 25% tariffs on certain products coming from Canada. At first, these duties were applicable to all types of Canadian goods. However, one day after their announcement, Trump made an exception for items that meet the standards set under the United States-Mexico-Canada Agreement, also known as USMCA, which is a pact aimed at facilitating free trade among the three nations.

In reaction to the U.S. tariffs, Canada imposed a 25% counter-duty on $30 billion worth of products and announced further actions.

Even with the trade disruptions, both the S&P 500 and Nasdaq ended higher on Tuesday.

The S&P 500 rose by 0.3%, whereas the Nasdaq surged by 0.8%.

The Dow Jones Industrial Average showed little movement. The index declined slightly by 11 points, or 0.03%.

'More: "Significantly pricier": How will Trump's vehicle taxes impact automobile costs?'

On Monday, Trump informed journalists at the Oval Office that he had decided on a plan regarding the new batch of tariffs scheduled to come into play on April 2. However, he chose not to provide further specifics.

Further U.S. tariffs might prompt retaliatory actions from trading partners, intensifying international trade strains that surfaced following an earlier series of duties implemented by the Trump administration the prior month.

Europe has a "firm strategy" to respond to President Donald Trump’s proposed tariffs, according to Ursula von der Leyen, who spoke during a address on Tuesday as the head of the European Commission.

"We will approach these negotiations from a position of strength. Europe holds a lot of cards, from trade to technology to the size of our market," von der Leyen said.

A few days prior, Trump informed journalists during the weekend that his tariff policies might impact "every single country."

"The tariffs will be much more favorable compared to what these countries offered us, which means they will be better than how these nations treated the United States of America," he stated.

Selina Wang from ABC News provided contributions for this report.