Goa, Aug. 26 -- Canada is set to announce retaliatory tariffs against the United States as tensions between the two countries escalate, with Prime Minister Mark Carney accusing Washington of seeking to undermine key Canadian industries and US President Donald Trump threatening further tariffs.

Canadian Finance Minister Francois-Philippe Champagne and three other cabinet ministers are expected to unveil Ottawa's response on Tuesday. Carney has indicated that Canada could move away from matching US tariffs dollar-for-dollar and instead introduce targeted measures aimed at protecting Canadian workers and businesses.

The latest escalation followed Trump's warning that Canada must "fall in line" or face consequences that could be worse than ...