Good morning. We’ve reached the tit-for-tat phase of the trade war. More on that below, along with Ukraine’s Independence Day and Iran’s so-called “economic D-Day.”

Prime Minister Mark Carney said a new trade deal between Canada and the United States remains possible, while Ontario Premier Doug Ford engaged in a war of words with President Donald Trump and threatened to cut off Ontario’s electricity exports to the U.S. The PM met with his provincial and territorial counterparts yesterday and continues to build a business support package.

Further retribution: Trump said Monday morning that he would double auto tariffs from 25 per cent to 50 per cent as of Jan. 1, 2027, and that these would apply to cars, trucks and auto parts. Auto parts have not previously been subject to tariffs, and shares of major Canadian auto parts companies plunged.

Future fight: The government has yet to release any details of what products will be targeted by retaliatory tariffs, which has revived a guessing game among trade watchers. Consumer products bore much of the brunt when Ottawa first slapped counter-tariffs on $30-billion worth of American goods last year.

Farther south: Mexican President Claudia Sheinbaum is playing down the trade dispute between Canada and the United States, while expressing optimism that Mexico will reach its own deal on tariffs with its northern neighbour.

Keep reading

• Editorial board: Canada’s sovereignty is not negotiable
• Andrew Coyne: The U.S. isn’t negotiating trade with Canada. This is a shakedown
• Robyn Urback: Canadians are fighting for their sovereignty. Americans don’t even realize they’re in a war

U.S. President Donald Trump’s pledge to unleash an “economic D-Day” against Tehran turned out to be new warnings for countries to cut off Iran from the rest of the global economy. U.S. Treasury Secretary Scott Bessent unveiled a new round of sanctions as the administration struggles to find an off-ramp nearly six months into an unpopular war.

What to watch: Experts say Washington is wary of Chinese retaliation ahead of expected talks next month between U.S. President Donald Trump and Chinese President Xi Jinping, with any curbs on China’s exports of critical minerals being especially sensitive.

Britain and France pledged to provide Ukraine with stronger military support at a meeting of allies to mark Kyiv’s Independence Day celebrations. The allies will provide access to classified technology such as long-range weapons and faster deliveries of air defence missiles.

Russia responds: The Kremlin said the use of the classified British technology would “add fuel to the fire” of their worsening relations, after it warned London last week there would be “consequences” for supplying drones to Kyiv.

Conservationists and some Indigenous groups and are expressing concern about silence from Ottawa over a plan, proposed by the Trudeau government, to ban ocean-based salmon farms off the coast of British Columbia.

The context: Some fish farms have already closed in B.C., while others remain open. In 2024, Ottawa released a draft transition plan to phase out by June, 2029, open-net salmon farms in B.C., which Indigenous communities and conservationists argue are harming migrating wild Pacific salmon.