New Delhi, Aug. 25 -- Canada is set to announce retaliatory tariffs against the United States on Tuesday (local time) after ties between the once long-standing allies deteriorated sharply on Monday, when US President Donald Trump told Canadian leaders to "fall in line" or face consequences "far WORSE" than existing tariffs.

According to AP, Canadian Prime Minister Mark Carney accused the US of trying to subordinate Ottawa, saying Washington's trade demands showed that it wanted to "destroy our major industries," including autos, steel and aluminum. His remarks came after the Republican president threatened new 50 per cent tariffs on Canadian vehicles, auto parts and steel.

On Tuesday morning, Finance Minister Francois-Philippe Champagne...