On Wednesday, Canada announced $21 billion in new retaliatory tariffs on U.S. goods, in response to President Donald Trump’s new 25% tariffs on steel and aluminum.
Trump’s 25% tariff increase on all steel and aluminum imports officially took effect on Wednesday, the latest move in the administration’s plans to reshape global trade norms in favor of U.S. manufacturing. (Canada is the biggest foreign supplier of steel and aluminum to the U.S.).
Canadian Finance Minister Dominic LeBlanc said: “Today, I am announcing that the government of Canada, following a dollar-for-dollar approach, will be imposing, as of 12:01 a.m. tomorrow, March 13, 2025, 25% reciprocal tariffs on an additional $29.8 billion of imports from the United States. This includes steel products worth $12.6 billion and aluminum products worth $3 billion as well as additional imported U.S. goods worth $14.2 billion. The list of additional products affected by counter-tariffs includes computers, sports equipment, and cast iron products as examples. We will not stand idly by while our iconic steel and aluminum industries are being unfairly targeted/”
The latest action from Trump also prompted retaliation from the European Commission, which announced shortly after Trump’s tariffs took effect that it would impose counter tariffs on the equivalent of $28 billion worth of U.S. goods –, including beef, motorcycles and whiskey alongside American-made steel and aluminum — starting next month. The Commission said in a statement: “we regret the unjustified US 25% tariff on steel and aluminium imports. The EU will protect its consumers and businesses. We are launching swift, proportionate countermeasures worth up to ($28 billion), matching the economic impact of the US tariffs.”
The countries most affected by the tariffs are Canada, Brazil; Mexico; and South Korea, which all have enjoyed some level of exemptions or quotas. Most U.S.-Canada trade remains duty-free under the USMCA trade deal that Trump signed in 2020.
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