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Canada has moved forward with retaliatory 25% tariffs on roughly $20.6 billion worth of US goods in response to the Trump administration’s steel and aluminum tariffs.
Some shit you should know before you read: Weeks ago, President Trump said he would put 25% tariffs on steel and aluminum imports, arguing that the move was necessary to protect American industries and reduce reliance on foreign metals. The tariffs applied to all countries, including Canada, the largest supplier of both materials to the US—accounting for approximately 25% of all steel and more than half of the aluminum used in the US economy. Trump justified the tariffs as a national security measure under Section 232 of the Trade Expansion Act, claiming that dependence on foreign metals weakened domestic production and put critical industries at risk.
What’s going on now: In retaliation for President Trump’s 25% tariffs on steel and aluminum, Canada announced its own 25% counter-tariffs on $20.6 billion worth of US goods, set to take effect at 12:01 AM ET on Thursday. These tariffs target $8.8 billion in US steel, $2 billion in aluminum, and additional products like computers, sports equipment, and cast iron goods. Canadian Finance Minister Dominic LeBlanc condemned the US move, stating that the Trump administration was “inserting disruption and disorder” into a successful trade partnership and raising the cost of everyday goods for both Canadians and Americans. Foreign Affairs Minister Melanie Joly also criticized the tariffs, calling them “unjustified and unjustifiable,” and accused Trump of using economic coercion to pressure Canada.
In response to Canada’s actions, Commerce Secretary Howard Lutnick made it clear that Trump’s tariffs would remain in place until the US increases domestic steel and aluminum production. He also hinted that copper could be the next target for trade restrictions and signaled that Trump was not backing down from his broader trade agenda.
This comes as LeBlanc and Ontario Premier Doug Ford are scheduled to visit Washington on Thursday to meet with Secretary Howard Lutnick in an attempt to ease tensions. Ford previously threatened to impose a 25% surcharge on electricity exports to three US states in retaliation for Trump’s tariffs but later backed down after Trump withdrew a threat to double US tariffs on Canadian steel and aluminum to 50%.
Canadian officials have stated that while they will not renegotiate the United States-Mexico-Canada Agreement (USMCA) under pressure, they are looking for ways to de-escalate tensions and stabilize trade relations.
