OTTAWA — Canada is preparing to announce new retaliatory measures against the United States as an escalating trade dispute puts fresh pressure on Canadian businesses and exporters.

The latest development follows President Donald Trump’s threat to impose 50% tariffs on Canadian automobiles, trucks and automotive parts, adding another major flashpoint to already strained Canada-U.S. relations. The new auto and steel measures are scheduled to take effect on January 1, 2027.

Ottawa has indicated that it will respond with dollar-for-dollar tariffs, with Canadian countermeasures expected to begin September 8. The federal government’s response comes after recent trade negotiations between the two countries failed to produce an agreement.

The dispute could have significant consequences for Canada’s automotive sector, manufacturers, exporters and integrated North American supply chains. Businesses are now watching closely for details of Ottawa’s response and whether further negotiations can prevent additional economic disruption.

The escalating conflict also represents a major challenge for Prime Minister Mark Carney, whose government is attempting to protect Canadian industries while keeping trade channels with the country’s largest trading partner open.

Canada’s next move could determine the direction of the trade dispute in the weeks ahead, with businesses and consumers watching for possible effects on prices, investment and jobs.