Ottawa/Toronto — From mustard to motorboats, Canada’s about to fire back against Donald Trump on its national holiday. Prime Minister Justin Trudeau will mark Canada’s 151st birthday on Sunday by imposing tariffs on about C$19.4bn (US$14.6bn) worth of US imports in response to American levies on Canadian steel and aluminium that went into effect a month ago. While the tariffs alone are unlikely to derail Canada’s expansion or boost overall inflation, they add to the growing tension between two of the world’s biggest trading partners. Talks over a new North American Free Trade Agreement have stalled, and Trump has threatened to impose additional duties on cars. Canada, meanwhile, is preparing fresh duties as early as next week on non-US steel imports to prevent dumping.

"It’s regrettable that we have to engage in this kind of tit-for-tat trade war, but it’s been forced on us by Mr Trump," Toronto-based trade lawyer Lawrence Herman said in a phone interview. "Canada has no choic...

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