Ottawa: Canada has pledged a strong retaliation response to U.S. President Donald Trump’s latest tariffs. Industry Minister François-Philippe Champagne called the measures “totally unjustified” and promised a “clear and calibrated” retaliation.
Trump Imposes New Tariffs
Trump announced a 25% import tax on steel and aluminum, effective March 12. Canada, the largest supplier of both metals to the U.S., is directly impacted. Trump argues the tariffs will protect American jobs and industries. However, economists warn they could raise prices for U.S. consumers and businesses.
Canada’s Strong Response
Canada exports six million tonnes of steel and three million tonnes of aluminum to the U.S. each year. Champagne stated that these exports strengthen North America’s economic and security interests.
Leaders across Canada condemned Trump’s decision. Quebec Premier François Legault questioned whether the U.S. would prefer to source aluminum from China instead. Opposition leader Pierre Poilievre vowed to impose matching tariffs on the U.S. if elected prime minister.
Economic Consequences
Industry experts predict negative effects on both Canadian and U.S. businesses. Catherine Cobden, head of the Canadian Steel Producers Association, warned that past tariffs hurt industries on both sides of the border.
Tariffs function as taxes on imported goods, increasing costs for companies and consumers. U.S. firms relying on steel and aluminum imports have expressed concerns about rising prices. Trump says the tariffs will revive U.S. manufacturing, calling them “the beginning of making America rich again.”
Growing Trade Tensions
Trump has used tariffs as a negotiation tool, already engaging in disputes with Canada, Mexico, and China. His administration recently delayed a separate 25% tariff on all Canadian and Mexican imports after both countries pledged action on illegal migration and drug trafficking.
China has also been hit with a 10% tariff on all goods entering the U.S. in response to a growing trade deficit. Beijing retaliated with its own tariffs on U.S. products.
Trump has hinted at imposing tariffs on European Union imports as well. When asked about possible retaliation from trade partners, he responded, “I don’t mind.”
What Happens Next?
Canada is preparing to file a formal complaint with the World Trade Organization. The outcome of these trade disputes could reshape global trade policies. With tensions escalating, businesses on both sides of the border are bracing for economic uncertainty.
