Canada announces a $30 billion response before crucial tariff talks.
In response to the U.S. imposing a 25% tariff on steel and aluminum, Canada has unveiled new trade measures worth nearly $30 billion. The latest round of tariffs, set to take effect just after midnight on Thursday, targets American steel, aluminum, and various other products such as tools, computers, and sports equipment.
Canada’s Retaliatory Move
Canada's new tariffs include:
- $12.6 billion on U.S. steel products
- $3 billion on aluminum imports
- $14.2 billion on other goods, including home appliances, water heaters, and cast-iron products
These tariffs build on previous Canadian measures targeting U.S. goods, including food, furniture, and clothing.
Growing Concerns Over Economic Impact
Canadian industry leaders warn that the tariffs could lead to job losses and long-term economic harm. Hamilton Mayor Andrea Horwath expressed deep concerns, stating that prolonged tariffs could cause “permanent damage” to Canada’s steel industry. Experts believe that the pressure could eventually force the U.S. to reconsider its stance.
Canada Seeks Talks with the U.S.
Mary Ng, Canada’s Minister of Trade, has called for formal consultations with the U.S. She criticized Washington’s actions, arguing that the tariffs violate trade agreements such as the Canada-United States-Mexico Agreement (CUSMA) and World Trade Organization (WTO) rules. Ng urged the U.S. to treat Canada as a trade partner rather than imposing unfair restrictions.
Energy Sector Could Join the Trade War
Canada’s Energy Minister Jonathan Wilkinson hinted at potential non-tariff retaliations, including restrictions on oil exports to the U.S. and additional export duties on key products. Wilkinson suggested that if tensions escalate, Canada could limit the supply of essential resources, including critical minerals, which would push the U.S. to rely more on China. However, Alberta Premier Danielle Smith strongly opposed this move, calling it “off the table.”
Political Leaders Weigh In
NDP Leader Jagmeet Singh strongly condemned Trump’s trade policies, labeling him an “economic arsonist” and urging Canada to expand its own metal industries. Meanwhile, Ontario Premier Doug Ford voiced his support for a fresh approach, stating that Canada should “move on” from Prime Minister Trudeau and seek a better trade deal under new leadership.
Industries Feeling the Pressure
Canadian businesses are already experiencing the effects of the tariffs. Moosehead Breweries, one of Canada’s largest beer producers, has been hit hard due to its reliance on U.S. aluminum for packaging. Company CEO Andrew Oland described the situation as “chaos” and highlighted rising costs due to tariffs. To protest Trump’s policies, Moosehead launched a "Presidential Pack" featuring 1,461 beers—one for each day until the next U.S. presidential election.
U.S. Officials Defend Tariffs
Trump defended his actions, claiming he has the “right to adjust” trade policies and suggesting there will be little flexibility in upcoming negotiations. Meanwhile, Century Aluminum CEO Jesse Gary backed the tariffs, stating they would strengthen U.S. domestic production.
Mexico Takes a Wait-and-See Approach
Mexico has decided to hold off on retaliatory tariffs until April 2, assessing the U.S. trade moves before responding. Mexican President Claudia Sheinbaum stated that the government would take necessary action if the situation worsens.
What’s Next?
With trade tensions mounting, Canada is preparing for further negotiations. Newly elected Liberal leader Mark Carney has expressed willingness to engage with the U.S. to find a resolution. However, it remains unclear whether these tariffs will lead to a trade breakthrough or an even deeper conflict between the two countries.
