Canada prepares for trade war if Trump acts on tariff threat [Video]

OTTAWA — The Canadian government will slap escalating reciprocal tariffs on American products if Donald Trump moves ahead, as expected, as early as Monday with threatened tariffs against Canadian goods and is studying ways to support businesses and workers if an all-out trade war erupts.

Immediate payouts to hard-hit sectors or workers are not expected right away, and it may take weeks and months for the tariff dispute to play out, or for job losses, reduced hours and lost pay for Canadian businesses to be felt, according to a senior federal official.