Canada will announce retaliatory tariffs against the United States on Tuesday, an official familiar with the plans told The Associated Press.

Economists are warning that a re-escalation in the trade war with the United States puts Canada’s burgeoning economic recovery at risk.

The new 50 per cent tariff will make it much more expensive for many Canadian businesses to export to the U.S. – adding to the pain many sectors had already been feeling.

Ontario Premier Doug Ford escalated his feud with President Donald Trump on Monday, telling the president to “kiss my ass” as the U.S. and Canada spiral deeper into a messy trade war.

Alberta Premier Danielle Smith and Ontario Premier Doug Ford discussed Canada’s ongoing trade war during a Monday phone call.

Ottawa plans to match U.S. tariffs dollar-for-dollar after Labour Day, targeting sectors including steel, dairy, appliances, agricultural equipment and electronics.