Trump said in an Oval Office signing ceremony on Monday that his administration will impose a 25% tax on goods from Canada and Mexico that may come as soon as February 1 – a move that could raise prices for American consumers.

The leader of Ontario said he will be calling an election next week because he needs a mandate to fight Trump's threatened tariffs.

Canadian Prime Minister Justin Trudeau reiterated on Tuesday that his government is ready to respond to all scenarios if U.S. President Donald Trump imposes tariffs on Canada.

Donald Trump plans to impose 25% tariffs on imports from Canada and Mexico but is undecided on oil exemptions. The tariffs aim to address illegal migration and fentanyl issues.