Tariffs: Canada vows retaliatory tariffs if Trump escalates trade war [Video]

Canada vowed to respond with retaliatory tariffs if President Donald Trump slaps additional levies on Canadian goods as part of an expected announcement of sweeping new tariffs on Wednesday.

“We will respond to additional measures,” Canadian Prime Minister Mark Carney told reporters on Tuesday. “We will put in place retaliatory measures if there are additional measures put against Canada tomorrow.”

Speaking to reporters minutes later, White House press secretary Karoline Leavitt reiterated Trump’s plan to announce wide-ranging new tariffs on April 2, which Trump has dubbed “liberation day.”

“Our country has been one of the most open economies in the world and we have the best consumer base,” Leavitt said. “But too many foreign countries have their markets closed to our exports.”

The Trump administration is weighing policy options ahead of the announcement, sources told ABC News. One proposal would impose a 20% flat tariff rate on all imports, while another would put in …