“Canada to Impose Counter-Tariffs in Response to Trump’s Steel and Aluminum Tax Hike”

The Donald Trump administration has moved forward with imposing higher tariffs on Canadian steel and aluminum imports, prompting Canada to announce counter-tariffs on approximately C$30 billion ($20.8 billion) worth of U.S.-made products, according to Bloomberg. In a post on his Truth Social platform, Trump declared that he had instructed his Secretary of Commerce to increase tariffs on all Canadian steel and aluminum imports, raising them from 25% to 50%. These tariffs took effect immediately.

Since returning to office, Trump has enforced significant tariffs on key U.S. trade partners, including Canada, Mexico, and China. While some reductions were made for neighboring countries, Trump has pledged additional levies to be implemented on April 2.

The new tariffs are expected to significantly impact Canada, which supplies about 50% of U.S. aluminum imports and 20% of U.S. steel imports, as per an analysis by EY’s chief economist Gregory Daco. Furthermore, Trump warned that if Canada does not drop longstanding tariffs, he would substantially increase tariffs on car imports from Canada starting April 2, threatening to “permanently shut down” the country’s automobile manufacturing sector. This move signals escalating tensions in the trade relationship between the two nations.