Breaking Update: Mark Carney vows ‘serious response’ to Donald Trump’s 25% trade tariff on Canada….See More

It comes after Carney, the frontrunner to be Canada’s next prime minister, said his country “will not bow down to a bully.”

Mark Carney, the favorite to succeed Justin Trudeau as Canada’s next prime minister, has said Donald Trump’s 25 percent tariff announcement requires “the most serious trade and economic responses” in the nation’s history.

In a statement shortly after Trump announced the plan for imported goods, Carney said: “Canada will not bow down to a bully. We won’t stand by as illegal US tariffs hurt our workers and their families. As Canadians, we need to face this challenge as one united team.”

The former governor of the Bank of Canada and Bank of England says “dollar-for-dollar retaliatory tariffs” should be enforced “where they will be felt the hardest in the United States but will have the least impact in Canada.”

Carney, 59, is one of five candidates in the running to succeed Justin Trudeau as leader of the governing Liberal Party.

He has secured the largest support base among Liberal MPs since Trudeau stepped down in January.

The tariffs imposed by the United States today are a clear violation of our trade agreements and require the most serious trade and economic responses in our history,” the statement said, adding that Canadian workers will need support “through what will be a difficult moment.”

Declaring an economic emergency order, Trump also targeted Mexico with 25 percent tariffs on imports, while imposing duties of 10 percent on all imports from China.

However, energy from Canada, including oil, natural gas and electricity, will be taxed at a lower 10 percent tariff.

Trump’s order also includes a mechanism that allows the US to increase the rates if the countries choose to retaliate.

Experts fear the looming economic standoff between Washington and its two largest trading partners, Mexico and Canada, could backfire and possibly worsen inflation.

It means Trump’s pledge to lower the prices of groceries, gasoline, housing and cars could be at risk.

The tariffs go into effect on Tuesday.

A new analysis by the Budget Lab at Yale, cited by the Associated Press, forecast a worst case scenario for U.S. households: losing the equivalent of $1,170 in income from the taxes.