In a further escalation of the ongoing trade dispute between the United States and Canada, President Donald Trump has announced plans to increase tariffs on automobiles and auto parts imported from Canada, potentially raising them from 25% to 50%, effective January 1st. The announcement comes after US-Canada trade negotiations collapsed last week, with both parties accusing each other of making unreasonable demands at the eleventh hour. In response, Canadian officials have planned a press conference for Tuesday to outline their strategy for dealing with the escalating trade war and protecting Canadian workers and businesses during this challenging period. The press conference will involve government leaders in business, finance, and economic development sectors. Earlier on Monday, Prime Minister Mark Carney condemned Trump's latest tariff threat as unsurprising and accused him of aiming to destroy Canada's auto industry. Carney expressed readiness to resume negotiations only if the US adopts a more cooperative approach. As the trade war intensifies, both sides have warned that their businesses could suffer significant losses due to the new round of tariffs and the retaliatory measures planned by Canada on September 8th. The rapidly escalating conflict has also raised concerns about the future of the USMCA trade pact between the three North American countries - the United States, Canada, and Mexico. Experts warn that the risk of the USMCA unraveling has increased significantly, potentially plunging Canada into recession and leaving it on a permanently lower growth path.