The Latest: Canada is expected to announce retaliatory tariffs against the US

Canada will announce retaliatory tariffs against the United States on Tuesday as relations sharply deteriorate, with President Donald Trump telling Canadian leaders to “fall in line” and Prime Minister Mark Carney accusing Washington of trying to subordinate Canada.

Trump threatened new 50% tariffs on Canadian vehicles, auto parts and steel after Carney walked away from trade negotiations late Friday. Carney said the demands are an attempt to “destroy our major industries.” On Tuesday, Trump claimed that he’s considering renaming Lake Ontario as “Lake America.” He also insulted Canada's leader by calling him “Governor Carney.”

The Supreme Court on Monday cleared the way for Trump to move ahead with his executive order restricting mail-in voting, though it remains unclear how much his administration can implement before the fast-approaching midterm elections. Mail balloting has long been a favorite target for Trump, who has claimed that it breeds fraud despite strong evidence to the contrary and his own use of the voting method.

Treasury Secretary Scott Bessent announced a new round of sanctions aimed at Iran on Monday and warned every country that does business with the Islamic Republic to sever those financial ties or face retaliation from the U.S. The announcement follows Trump’s pledge last week to unleash an “economic D-Day” against Iran, in an effort to sever it from the rest of the global economy.

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Ontario Premier Doug Ford told The Associated Press in an exclusive interview Monday that “everything is on the table,” noting his province would be ready to cut off electricity and critical minerals to the U.S. if the trade war worsens. Trump “underestimates Canada. We’re all in,” Ford said.

Cars and auto parts, as well as energy products, were excluded from Trump’s latest round of tariffs — but remained key sticking points in negotiations that crumbled over the weekend, and Carney said Monday that Washington’s auto-sector proposals would “gradually dismantle” Canadian production.

Canada is the largest customer for U.S. automobiles, Carney noted — and he questioned what Trump’s latest move would mean for workers in states such as Ohio, Kentucky and Alabama who depend on that demand.

Here are just some of the many items specified by the White House that are subject to Trump’s 50% import tax:

“There is a huge gap between the American perspective and the Canadian perspective. That’s the first point,” Carney added. “In the final hours of the negotiations, it was a question of — you mentioned Netflix — discoverability on platforms, the streamers. You can see whether, if you want to watch some television, it is easy or not to find French-language and Quebec programs. Because of legislation here in Quebec, it is easier now. But for the Americans, that is an irritant. No, it is a law.”

Labeling is another example, he said: “That is also on the list of irritants the Americans mention. And the government says each time: No, no, no. The joke is over. It’s not amusing. It’s not a ‘funny fact.’ It’s a right.”

Carney said Monday that U.S. negotiators had raised the discoverability of French-language content on streaming platforms, along with French-language labeling rules, as trade irritants.

And he rejected the idea that such protections were negotiable, saying in French: “For the Americans, questions about the French language, Quebec culture, francophone culture and Canadian culture are irritants. Here in Quebec, here in Canada, they are rights — fundamental rights.”

“I love French Canadians,” the president said in a follow-up social media post.

Trump appeared to be responding to assertions by Carney that the United States had proposed measures he deemed unacceptable that would hurt French language protections.

Trump accused Carney of telling a “lie” and disparaged the prime minister as “weak” and “ineffective.”

“I would never interfere with Canadians speaking French! In fact, I have never even thought of doing such a stupid thing,” he said, asserting the claim was made up by Carney in a bid to boost his political standing at home.

The Democratic leader said affordability is not a hoax as Trump has said, but very real — “People are drowning in this failed economy.”

The meeting between Jeffries and Kushner, the president’s son-in-law and top outside adviser, was seen as an overture from the administration before the midterms elections.

Speaker Mike Johnson, a close Trump ally, had bristled that Kushner better not be hedging his bets against Republicans.

“He asked for a meeting and I took it,” says Rep. Hakeem Jeffries in a defiant video posted to social media.

Wearing a New York Yankees cap and looking straight into the camera, Jeffries, who is in line to become House speaker if Democrats seize majority control of the House, leveled a follow-up warning: “I shouldn’t have to say it but I am: No one is going to get a pass.”

“We are going to hold every single member of the Trump cartel accountable — from day one,” Jeffries said, foreshadowing a robust oversight agenda.

Such a change would be reminiscent of the Republican president’s unilateral action last year by executive order to rename the Gulf of Mexico to the Gulf of America.

The United States and Canada are locked in a trade dispute, with Canada expected to announce retaliatory measures Tuesday. That’s in response to the Trump administration enacting 50% tariffs on $20 billion of Canadian goods over the weekend after talks between the countries broke down.

“The United States is giving serious consideration to changing the name of Lake Ontario to Lake America in that we don’t expect to doing much business with Ontario any longer,” Trump said Tuesday on social media.

The U.S.-Canadian border runs through the middle of the lake on the shore of New York state. Ontario is Canada’s most populous province and is home to the country’s auto industry.

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Canada will announce retaliatory tariffs against the United States on Tuesday after relations deteriorated sharply Monday, with President Donald Trump telling Canadian leaders to “fall in line” or face consequences “far WORSE” than existing tariffs and Prime Minister Mark Carney accusing Washington of trying to subordinate Canada.

Trump also threatened new 50% tariffs on Canadian vehicles, auto parts and steel, while Carney said U.S. trade demands showed Washington wanted to “destroy our major industries,” including autos, steel and aluminum.

Finance Minister François-Philippe Champagne and three other Cabinet ministers are also expected Tuesday morning to share details of supports for workers affected by tariffs. Carney said earlier Monday that Canada may need to move away from matching U.S. tariffs dollar for dollar and instead use more targeted retaliation aimed at protecting Canadian workers and businesses.

Motorcyclists pass a billboard depicting U.S. President Donald Trump underwater amid explosions, with the words "Great Victory! Strait of Hormuz," in Tehran, Iran, Monday, Aug. 24, 2026. (AP Photo/Vahid Salemi)

Ontario Premier Doug Ford speaks to media at a housing development in Hamilton, on Monday, Aug. 24, 2026. (Nick Iwanyshyn/The Canadian Press via AP)

Canadian Prime Minister Mark Carney meets workers at the Davie shipyard in Levis, Monday, Aug. 24, 2026. (Jacques Boissinot/The Canadian Press via AP)

President Donald Trump speaks during a back to school event in the Rose Garden of the White House, Monday, Aug. 24, 2026, in Washington. (AP Photo/Alex Brandon)

NEW YORK (AP) — Oil prices are falling again on Tuesday, which is helping to ease worries in the bond market and support stock prices.

The S&P 500 rose 0.4% and pulled a bit closer to its all-time high set earlier this month. The Dow Jones Industrial Average was up 65 points, or 0.1%, as of 9:35 a.m. Eastern time, and the Nasdaq composite was 0.7% higher.

Some of the strongest action was in the oil market, where the price for a barrel of Brent crude fell 2.8% to $87.99 and was heading for a second decline following 13 gains in 14 days. The drop came even though tensions between the United States and Iran seemed to ratchet higher after the Trump administration announced new sanctions to further hurt Iran’s economy.

Brent’s price zigzagged between $72 and $102 last month as hopes rose and fell that the United States and Iran could reach a deal that would allow oil tankers to freely exit the Persian Gulf again.

Tuesday's drop in oil prices tempered the worries about high inflation that helped drive Treasury yields in the bond market higher through the summer. Yields had gotten so high that the U.S. Treasury Department announced a surprise move last week to increase its repurchases of longer-term Treasury notes and bonds.

High yields make borrowing more expensive for everyone and can slow the economy’s growth while undercutting prices for stocks, cryptocurrencies and other investments.

The yield on the 10-year Treasury fell to 4.66% from 4.70% late Monday and from 4.74% at the end of last week. That’s a significant move for the bond market, though the 10-year yield remains firmly above its 3.97% level from before the war with Iran sent oil prices and worries about inflation much higher.

On Wall Street, Nvidia and other winners of the boom in artificial-intelligence technology helped lead the way. Nvidia rose 1.6%, a day after its drop of 2.9% was the heaviest weight on the S&P 500.

AI stocks have veered up and down through the summer on worries that their prices shot too high and that the AI boom may not be sustainable if it doesn’t produce enough profits for companies. Nvidia will report its latest quarterly results on Wednesday, which could help steer the next move for AI-related stocks.

The gains for chip stocks helped offset a 21.8% drop for Dick’s Sporting Goods, which reported weaker results for the latest quarter than analysts expected. Executive Chairman Ed Stack said the retailer cut prices on some of its footwear and apparel to remain competitive, while launches for some footwear during the quarter ended up being weaker than it expected.

The company cut is forecast for an underlying measure of profit in 2026 for both its Dick’s and Foot Locker businesses. Its stock is potentially heading toward its worst day in three years.

In stock markets around the world, many indexes drifted modestly higher. South Korea’s Kospi, which is dominated by two AI winners, added 0.7% for one of the world’s biggest moves. It’s been steadying since plunging 22.2% in July.

AP Business Writers Matt Ott and Elaine Kurtenbach contributed to this report.

Options traders work on the floor of the New York Stock Exchange in New York, Friday, Aug. 21, 2026. (AP Photo/Yuki Iwamura)

Trader Robert Charmak works on the floor of the New York Stock Exchange in New York, Friday, Aug. 21, 2026. (AP Photo/Yuki Iwamura)

A person walks by an electronic stock board showing Japan's Nikkei index at a securities firm Monday, Aug. 24, 2026, in Tokyo. (AP Photo/Eugene Hoshiko)

A surveyor works in front of a stock market chart Monday, Aug. 24, 2026 in Tokyo. (AP Photo/Eugene Hoshiko)

Currency traders watch monitors near a screen showing the Korea Composite Stock Price Index (KOSPI) and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Tuesday, Aug. 25, 2026. (AP Photo/Ahn Young-joon)

A currency trader passes by a screen showing the Korea Composite Stock Price Index (KOSPI) at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Tuesday, Aug. 25, 2026. (AP Photo/Ahn Young-joon)

A currency trader passes by a screen showing the Korea Composite Stock Price Index (KOSPI), the foreign exchange rate between U.S. dollar and South Korean won, SK Hynix and Samsung Electronics Co. stock price at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Tuesday, Aug. 25, 2026. (AP Photo/Ahn Young-joon)