Canada stands as the largest foreign supplier of steel and aluminum to the U.S.
Canada is set to impose retaliatory tariffs on U.S. imported goods valued at CAD29.8 billion ($20.7 billion) starting March 13. This decision comes in response to U.S. President Donald Trump’s steel and aluminum tariffs, as stated by Canada’s Finance Minister Dominic LeBlanc.
Trump’s heightened tariffs on steel and aluminum imports came into force on Wednesday, coinciding with the expiration of prior exemptions, duty-free quotas, and product exclusions. This move is part of his strategy to shift global trade standards in favor of the U.S.
Canada’s role in steel and aluminum supply
Canada stands as the largest foreign supplier of steel and aluminum to the United States.
“We will not stand idly by while our iconic steel and aluminum industries are being unfairly targeted,” LeBlanc asserted. He emphasized that Canada would adopt a dollar-for-dollar retaliation strategy.
Breakdown of Canada’s retaliation
Canada’s countermeasures target steel products worth CAD12.6 billion and aluminum products valued at CAD3 billion, alongside additional U.S. imported goods totaling CAD14.2 billion. This culminates in a grand total of CAD29.8 billion. The tariffs will be implemented at 12:01 a.m. (0401 GMT) on Thursday.
LeBlanc noted that the products impacted by Canada’s counter-tariffs include computers, sports equipment, and cast iron merchandise.
Read more: U.S.-Canada trade tensions escalate as Trump boosts, then retracts metal tariffs
Previous tariffs on U.S. goods
These new retaliatory tariffs are in addition to those placed on CAD30 billion worth of U.S. goods, which Canada initially introduced on March 4 in response to Trump’s broader tariffs.
“This is now the second round of unjustified tariffs leveled against Canada and Canadian goods,” remarked Foreign Minister Melanie Joly. “The excuse for the first round was exaggerated claims about our border… The latest excuse is national security, despite the fact that Canadian steel and aluminum add to America’s security.”
Joly indicated that she would engage with U.S. Secretary of State Marco Rubio during this week’s G7 foreign ministers’ meeting in Quebec. She also noted her intention to collaborate with European allies to exert pressure on the United States.
Anticipated meetings between Canadian and U.S. officials
Moreover, Canadian officials are scheduled to meet with their U.S. counterparts on Thursday. Algoma Steel, a Canadian steel producer, has temporarily halted exports of steel to the United States until Thursday, as CEO Michael Garcia stated, pending the outcomes of the meetings.
Escalation in U.S.-Canada trade war
The escalation of the trade conflict between the U.S. and Canada further occurs as Prime Minister Justin Trudeau prepares to transfer power this week to his successor Mark Carney, who secured the leadership of the ruling Liberals on Sunday.
On Monday, Carney mentioned that he could not communicate with Trump until after being sworn in as prime minister. Trump reiterated on social media his desire for Canada “to become our cherished Fifty First State.”
