Canada is preparing to unveil retaliatory tariffs against the United States on Tuesday, following a dramatic deterioration in relations Monday. President Donald Trump warned Canadian leaders to “fall in line” or risk consequences “far WORSE” than the tariffs already in place, while Prime Minister Mark Carney accused the Trump administration of attempting to subordinate Canada.

Trump also threatened to impose new 50% tariffs on Canadian automobiles, auto parts and steel. Carney, meanwhile, said Washington’s trade demands indicated an effort to “destroy our major industries,” including Canada’s auto, steel and aluminum sectors.

Finance Minister François-Philippe Champagne and three other Cabinet ministers are expected to announce Ottawa’s response Tuesday morning. Earlier Monday, Carney suggested Canada may no longer respond to U.S. tariffs on a dollar-for-dollar basis, saying the government could instead pursue more selective measures designed to shield Canadian workers and companies.

“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.

Speaking in French, Carney delivered an even more forceful assessment of the failed negotiations.

“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 increasingly hostile rhetoric highlights the depth of the deterioration in relations between the two longtime allies. The latest escalation follows Carney’s decision late Friday to end trade discussions with the Trump administration, prompting Trump to activate threatened 50% tariffs the following day on roughly $20 billion in Canadian products.

The United States and Canada maintain one of the world’s largest trading partnerships, with supply chains closely connected across the automotive, energy, agricultural and manufacturing sectors. A prolonged tariff confrontation could therefore impose significant costs on companies, employees and consumers in both countries.

Carney also questioned whether the United States could still be counted on as a dependable economic partner. He said Canada was increasingly finding trustworthy partners “everywhere in the world, except in the United States. Except in the United States. And Russia.”

The looming Canadian response marks another major escalation in a trade dispute between the two neighboring countries, as Ottawa seeks to protect domestic industries while Washington presses for concessions from one of its closest economic partners.