US President Donald Trump plans to impose a 25% tariff on steel and aluminum imports from Canada starting March 12, prompting warnings of retaliation from its northern neighbor and largest metal supplier.
Outgoing Prime Minister Justin Trudeau pledged to work with American officials and international allies to address what he termed “unacceptable tariffs,” warning of their negative impact on both countries. Trudeau, who will step down next month, promised a “firm and clear” response if necessary.
The stakes are particularly high for Canada, which exports 6 million tonnes of steel and 3.2 million tonnes of aluminum to the US annually, making it the largest foreign supplier of both metals. Data from the US Department of Commerce shows Canada’s steel exports to the US are nearly 50% higher than Brazil’s, the second-largest supplier at 4.1 million tonnes.
Quebec’s François Legault highlighted the regional impact, noting his province alone exports millions of tonnes of aluminum to the US yearly. Opposition leader Pierre Poilievre called the tariffs “wrong and unjustified” and indicated he would implement matching tariffs if elected prime minister.
Catherine Cobden of the Canadian Steel Producers Association emphasized the interdependence of the two markets, telling CBC: “We have steel that they need and they have steel that we need… we need each other.”
The announcement comes as Trump seeks to boost domestic production, calling the tariffs “a big deal, the beginning of making America rich again.” His administration argues the measures are essential for negotiating leverage and addressing the US trade deficit.
Economists warn the tariffs could raise prices for US consumers if sellers pass on higher import costs. US businesses dependent on imports have expressed concerns, though Trump maintains his plan will strengthen domestic manufacturing.
The two countries recently delayed implementing other reciprocal tariffs for 30 days after both agreed to address illegal migration and drug trafficking concerns. Canada, Mexico, and China remain among Trump’s top trade partners, with China already subject to a 10% tariff on US-bound goods.
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