Ottawa/Toronto, March 12 — Canada is set to impose counter-tariffs worth C$30 billion ($20.8 billion) on U.S. goods, responding to the Trump administration’s decision to raise duties on Canadian steel and aluminum, Bloomberg reported. The new measures will be announced Wednesday.
The trade escalation followed Ontario’s recent decision to impose a surcharge on electricity exports to the U.S., prompting Donald Trump to double tariffs on Canadian metal imports.
“I have instructed my Secretary of Commerce to add an ADDITIONAL 25% Tariff, to 50%, on all STEEL and ALUMINUM COMING INTO THE UNITED STATES FROM CANADA, ONE OF THE HIGHEST TARIFFING NATIONS ANYWHERE IN THE WORLD,” Trump posted on Truth Social. The tariffs took effect today.
Since returning to office, Trump has implemented sweeping tariffs on key trade partners, including Canada, Mexico, and China. While some reductions were granted to neighboring countries, new levies are set to take effect on April 2.
The new tariffs could have a significant impact on Canada, which supplies 50% of U.S. aluminum imports and 20% of its steel, according to EY’s chief economist Gregory Daco.
U.S. Commerce Secretary Howard Lutnick said Trump’s expanded 25% tariffs on steel and aluminum would remain until American domestic production was strengthened.
“So I think it’s just to level-set things, make sure we know each other, and then we’re going to negotiate with all of Canada,” he stated.
Lutnick also mentioned that Trump planned to add copper to the list of protected U.S. industries.
Trump further warned of higher tariffs on Canadian automobiles unless Ottawa removed what he called “egregious, long-time tariffs.”
“If other egregious, long-time Tariffs are not likewise dropped by Canada, I will substantially increase, on April 2nd, the Tariffs on Cars coming into the U.S. which will, essentially, permanently shut down the automobile manufacturing business in Canada,” he said.
He also questioned U.S. defense subsidies to Canada, warning they would be halted unless the country agreed to become America’s 51st state.
