Donald Trump sought to escalate his trade war with Canada on Sunday afternoon and issued a demand on Truth Social that Canadian companies wanting to do business with the U.S. reshore their headquarters within its borders.

His latest remarks come as Canadian officials warned that the country was prepared for an extended dispute with the U.S. after trade talks collapsed and Trump announced tariffs as high as 50 percent on some Canadian goods including dairy products and lumber. Canada has levied reciprocal tariffs against U.S. steel, aluminum and other exports.

On Sunday afternoon, the president said Canadian companies should move their headquarters and production facilities to avoid newly imposed tariffs. The duties are set to begin in 2027.