Canada Responds to US Steel and Aluminum Tariffs with $30B in Tariffs on American Products
The measures focus on steel products as well as a variety of items including computers and sports equipment.
The Canadian government has declared retaliatory tariffs following the implementation of universal U.S. tariffs on steel and aluminum that took effect on March 12.
According to Finance Minister Dominic LeBlanc, Canada’s measures will come into effect on March 13 and will target CA$29.8 billion worth of U.S. goods, as announced in a press conference held in Ottawa on March 12.
LeBlanc stated that these measures will impact steel products and various other goods including computers and sports equipment. They will work in conjunction with Canada’s previously imposed counter-tariffs this month in reaction to U.S. tariffs concerning border security and fentanyl.
“We refuse to remain passive while our vital steel and aluminum sectors are unfairly targeted,” LeBlanc asserted.
The European Union has also revealed plans for counter-tariffs in response to the U.S. tariffs on steel and aluminum, set to be enacted in April. Other nations, such as the United Kingdom and Australia, have yet to announce any retaliatory actions.
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Trump stated that addressing this gap and restoring domestic manufacturing capabilities is crucial for national security.
Currently, Canada holds the position of the largest supplier of steel and aluminum to the United States. There is a significant flow of steel imports into Canada from the U.S., with the trade in steel amounting to $20 billion, as reported by the Canadian Steel Producers Association.
The primary steel production center in Canada is located in Hamilton, Ontario, while Quebec leads in aluminum production.
During his first term, Trump had imposed tariffs on Canadian steel and aluminum under similar justifications. Canada retaliated by imposing its own tariffs on certain U.S. products. Both countries eased these trade barriers nearly a year later after reaching an agreement to clamp down on dumping and transshipment practices by other nations.
In reaction to Trump’s tariffs related to border security and fentanyl, which took effect earlier this month, Ontario Premier Doug Ford announced on March 10 that he would impose a surtax on electricity exports to three U.S. states.
Trump countered the next day, stating that Canada should refrain from using electricity as a “bargaining chip and threat,” warning it would incur a “big” cost for doing this, while also announcing a doubling of tariffs on Canadian steel and aluminum to 50 percent.
The situation was resolved later that day through a phone conversation between Ford and U.S. Commerce Secretary Howard Lutnick. Ford stated he would retract the electricity surtax and the two agreed to meet that week in Washington to discuss a renewed United States-Mexico-Canada (USMCA) free trade agreement before April 2.
LeBlanc and Industry Minister François-Philippe Champagne will also join the trip to the U.S. capital. However, LeBlanc mentioned that the discussions would not involve renegotiating the USMCA but rather aim to “cool down tensions” and reduce tariffs.
The United States plans to introduce another series of tariffs on April 2 targeting all trading partners as it seeks reciprocity. The Trump administration has already expressed discontent with various Canadian policies viewed as trade barriers, including its national sales tax (GST) and its Digital Services Tax affecting U.S. tech companies.
This is an ongoing story; updates will be provided.
