Canada is set to announce details of retaliatory tariffs against the U.S. on Tuesday after relations between the two countries deteriorated sharply on Monday.

U.S. President Donald Trump warned Canadian leaders on Monday to "fall in line" or face consequences "far WORSE" than existing tariffs, while Canadian Prime Minister Mark Carney accused the U.S. government of trying to subordinate Canada.

The U.S. imposed new 50% tariffs on Canadian goods such as wine, furniture and dairy products, while Carney said U.S. trade demands showed Washington wanted to "destroy our major industries," including autos, steel and aluminum. The dispute is widening the pressure on sectors that are deeply integrated across the two economies, where manufacturers and suppliers rely on cross-border trade flows that are now facing higher costs and added uncertainty.

Trump also said new 50% tariffs on Canadian cars, trucks, auto parts and steel would rise to 50% beginning Jan. 1, 2027.

"Without the United States, Canada couldn’t survive — It’s where they get all of their money and, because of their current bad leadership, primarily Governor Carney, and his Flunky, Ford, they will not be allowed to keep taking advantage of the United States — Their key to survival," Trump wrote on Truth Social, referring to Ontario Premier Doug Ford, who had discussed the tariffs during a Monday afternoon news conference.

"Remember, much of the Electricity, Oil, and Gas that Canada gets is transported through the U.S.A. Someone should get these clowns to 'fall in line' or, the consequences for Canada will be far WORSE!" he added.

Carney said Canada was prepared to find a solution to the trade dispute, but only if the U.S. approached the talks as a discussion between two sovereign nations.

"An attitude at the negotiation table that Canada is a subsidiary of the United States is not something we are going to accept," he said.

The sharp exchange underscores how relations have deteriorated since negotiations were suspended late Friday, after Canada and the United States blamed each other for the breakdown in talks. The U.S. imposed 50% tariffs the following day on about $20 billion worth of Canadian goods.

Over the weekend, Carney also said Canada "will match Washington's new tariffs dollar for dollar in order to protect Canadian workers, farmers, families, and businesses."

"You're at war when you get attacked. We got attacked," Carney said when asked whether Canada was engaged in a trade war.

The "dollar for dollar" tariffs on imports of U.S. steel, electronics and other products are expected to take effect on September 8, a timeline that adds another near-term checkpoint for businesses on both sides of the border as they wait for Tuesday's announcement.

Ford, whose Progressive Conservative Party typically opposes Carney’s Liberal Party, said that "everything is on the table" if the trade war continues. He also said Canadians are "in for an economic war" and added that they "know they’re going to have to sacrifice."

Reuters contributed to this report.