Canada announced on Wednesday that it will impose 25% tariffs on more than $20 billion worth of U.S. goods in direct retaliation for the Trump administration’s newly enforced steel and aluminum duties, which took effect overnight.
The new tariffs, set to be implemented on Thursday, target steel and aluminum imports, along with a wide range of U.S. products, including computers, sports equipment, and cast iron goods, Canadian Finance Minister Dominic LeBlanc confirmed at a press conference.
Trump’s increased tariffs on steel and aluminum imports came into effect on Wednesday following the expiration of prior exemptions, duty-free quotas, and product exclusions. The move is part of his broader strategy to reshape global trade dynamics in favor of the U.S. Canada, as the largest foreign supplier of steel and aluminum to the U.S., has been hit hardest by these measures.
The latest Canadian tariffs come on top of the 25% counter-tariffs Ottawa had already imposed on $30 billion worth of U.S. goods on March 4, in response to Trump’s sweeping tariffs on Canadian imports. Despite Trump later granting temporary exemptions on March 6 in the wake of a severe stock market downturn, Canada has kept these countermeasures in place.
The trade dispute between the two nations escalated further just as Prime Minister Justin Trudeau prepared to hand over power to his successor, Mark Carney, who secured the leadership of the ruling Liberal Party on Sunday. Carney, set to be sworn in this week, stated on Monday that he could not engage in direct talks with Trump until he officially took office. Meanwhile, Trump reignited tensions by declaring on social media that he wanted Canada “to become our cherished Fifty-First State.”
