The new tariffs are a significant development in the trade dispute and add to the trade barriers that already exist between the two countries.

The United States has maintained active tariffs ranging from 15% to 50% on Canadian steel, aluminum and copper. It also charges a 35% tariff on Canadian softwood lumber, along with a 25% tax on non-U.S. auto parts.

Those so-called sectoral tariffs are hitting those industries, and Canada is seeking some relief in ongoing talks with its U.S. counterparts.

Meanwhile, Canada has its own 25% countervailing tariff on select imports of U.S. steel, aluminum and vehicles, and most provinces pulled U.S. alcohol from shelves last year in response to U.S. taxes.

The latest tariff threat, announced in the form of a presidential proclamation, also comes as parallel talks with Mexico appear to be moving more quickly, adding more pressure on Carney to reach a deal.

U.S. Trade Representative Jamieson Greer is in Mexico this week for the latest round of formal trade talks. Last week, Greer said at the Aspen Security Forum that while he and his Canadian counterparts talk weekly, “we just haven’t seen much movement” in the negotiations.

The United States was the only country that refused to renew the USMCA, the trilateral agreement, this month.

The deal, which underpins around $2tn (£1.5tn) in trade each year, is facing pressure over unresolved disputes and US officials are pushing for changes. Without a long-term extension, the agreement will undergo annual reviews until it expires in a decade.

The new US pressure could also signal Trump’s renewed broader focus on tariffs.

Canada has often been one of the first countries targeted by the United States before imposing them more broadly, becoming an important indicator of where American trade policies are headed.

On Tuesday, Greer hinted that more global tariffs from the United States were on the way.

“We hope to see some action soon,” he told CNBC in an interview. “I can’t really specify a timeline at this time. I have a responsibility to inform Congress and other interested parties before I actually reveal those types of things.”

Meanwhile, Carney told reporters Tuesday that he had spoken with Trump and that the two had agreed to intensify trade talks.

He also said Canada would “consider all options in terms of how we would respond” if the new tariffs came into effect next month.

Carney, who has repeatedly said that no deal is better than a bad deal with Trump, stressed that Canada’s goal remains to achieve a comprehensive agreement with the United States.

He met with Canada’s provincial premiers on Tuesday afternoon to discuss the response to the latest US pressure, but may feel pressure from some provincial leaders to fight back.

“We can’t keep going backwards, we can’t keep going backwards, we have to go full steam ahead,” Ontario Premier Doug Ford, one of the most prominent Canadian critics of Trump’s trade policies, said Tuesday.

Lawrence Herman, a trade expert at the CD Howe Institute think tank, also urged a tough response.

“Giving in and trying to get along with the United States by making concessions now is not the right strategy and I think it would be detrimental to Canada’s national pride and our international standing in the eyes of the world,” he told the BBC.