Canada announced C$29.8 billion in retaliatory tariffs on the United States on Wednesday, responding to US President Donald Trump‘s hike in steel and aluminum tariffs. A Canadian official, speaking on condition of anonymity, confirmed the move.
The escalation follows the expiration of exemptions, duty-free quotas, and product exclusions for Canadian imports. Trump’s increased tariffs are part of his broader campaign to restructure global trade in favor of the United States.
Canada’s key role in US metal supply
Canada remains the largest foreign supplier of steel and aluminum to the US, making the new tariffs a significant blow to bilateral trade. The heightened duties mark a sharp turn in US-Canada trade relations and are expected to trigger significant economic repercussions.
The tariff announcement coincides with a major political transition in Canada. Prime Minister Justin Trudeau is set to hand over power this week to Mark Carney, who recently won the leadership race of the ruling Liberal Party. Carney, however, has stated that he cannot engage with President Trump until his official swearing-in.
Meanwhile, Trump reignited controversy by posting on social media his desire for Canada to “become our cherished Fifty First State.”
Trump’s announcement to raise tariffs on Canadian steel and aluminum to 50 per cent also cited Ontario’s decision to levy tariffs on US electricity imports. “I have instructed my secretary of commerce to add an additional 25 percent tariff, to 50 percent, on all steel and aluminum coming into the United States from Canada,” Trump posted on Truth Social.
This move rattled financial markets, triggering a sharp selloff on Wall Street amid fears of deepening economic strain. Investors are concerned that the escalating trade war could push the US economy toward a downturn.
(With Reuters inputs)