Trade talks are reportedly continuing between Canada and the U.S., with formal meetings having taken place since U.S. President Donald Trump revealed more threats and demands last week, a source close to the White House said.

The prime minister pledges to diversify its trading partners away from the US and prioritise the use of Canadian steel.

Four months since Trump fired the opening salvo of his trade war, only China and Canada have dared to hit back at Washington imposing a minimum 10 per cent global tariff, 50 per cent levies on steel and aluminium, and 25 per cent on autos.

Prime Minister announces package that includes caps on imported steel, prioritizing use of Canadian steel in government procurement, and $70 million to help steel workers get retrained.

President Trump's new 35% tariffs on Canadian goods take effect August 1, targeting everything from oil to groceries. Working families could face $150-$200 monthly increases as gas and food costs spike nationwide.

Indonesia also has agreed to purchase billions in U.S. energy, agriculture products and airplanes, Trump said July 15 in a social media post.

As President Trump ramps up the pressure on dozens of countries, trade experts fear U.S. tariff policy leaves consumers and businesses in limbo.