US-Canada trade war escalates

US President Donald Trump announced massive new tariffs on Canadian steel and aluminum Tuesday, while threatening to "shut down" its auto industry and saying the best way to end the trade war was for Washington's ally to be absorbed into the United States.

Trump's shock new threats came hours before a midnight deadline for ramping up the Republican's increasingly global trade offensive.

On his Truth Social platform, Trump announced that he would increase tariffs on Canadian steel and aluminum imports by an additional 25 percent for a total of 50 per cent duties on those commodities for the neighbor.

This is in addition to tariffs of 25 per cent on steel and aluminum imports from around the world, including exporters in Brazil, Mexico and United Arab Emirates.

The upcoming levies, which currently allow for no exceptions, threaten to hit everything from electronics to vehicles and construction equipment -- and have manufacturers scrambling to find cost-effective domestic suppliers.

The country facing the most aggressive action is Canada, historically one of the United States' closest allies and top trading partners, but now locked in an extraordinarily bitter war of words with the Republican, as well as constant threats over its sovereignty.

Canada's incoming prime minister Mark Carney struck a defiant note Sunday, vowing to stand up for "the Canadian way of life" and saying Canadians are "always ready" for a fight if needed.

Canada supplies half of US aluminum imports and 20 percent of US steel imports, noted industry consultant EY-Parthenon. AFP