Saad Ullah
Canada implements dollar-for-dollar retaliatory metal tariffs on U.S. goods worth C$29.8 billion ($20.69 billion) in response to Trump administration's steel and aluminum levies.
Metal (CN) Tariffs to Target Steel, Aluminum, and Consumer Goods
Canada announced decisive countermeasures against the Trump administration's metal tariffs on Wednesday, with Finance Minister Dominic LeBlanc confirming plans to impose 25% tariffs on approximately C$29.8 billion ($20.69 billion) worth of U.S. imports. These retaliatory metal tariffs will take effect at 12:01 am ET on Thursday, targeting C$8.8 billion worth of U.S. steel products, C$2 billion in aluminum products, and various other American imports including computers and sports equipment.
Canadian Metal (CN) Response Part of Broader Trade Defense Strategy
The newly announced levies represent just a portion of potential countermeasures Canada has prepared. The government has previously identified C$155 billion worth of imported U.S. items that could face tariffs if the United States maintains its aggressive trade stance against Canada. This comprehensive list targets a wide range of American exports including orange juice, peanut butter, wine, appliances, clothing, and certain pulp and paper products.
Metal (CN) Tariff Implementation Follows European Union's Lead
Canada's response comes on the same day the European Union announced its own retaliatory tariffs against the United States following President Trump's implementation of a 25% global levy on steel and aluminum imports. The EU's countermeasures could affect U.S. exports valued at approximately $28 billion, matching the value of European exports impacted by American metals tariffs.
Canadian Officials Warn of "Existential Threat" as Metal (CN) Dispute Escalates
During a media conference in Ottawa, LeBlanc emphasized that Canada's retaliatory metal tariffs are a direct response to the latest U.S. measures and should not come as a surprise to the White House, which was informed of Canada's intention to respond. Foreign Affairs Minister Melanie Joly took a stronger stance, describing the situation as an "existential threat" to Canada, citing Trump's targeting of Canada with various tariffs and rhetoric about annexing Canada as the 51st U.S. state.
"We need to fight back against this nonsense," Joly stated firmly, adding that "Canada's sovereignty wasn't up for negotiation."
Government officials acknowledged that Canadian businesses face challenging and uncertain times ahead but promised support for affected industries. Ottawa has already committed to making C$6.5 billion in financing available to support companies and is implementing changes to unemployment benefits to help employers retain workers while reducing hours due to trade disruptions.
The economic stakes are particularly high for Canada, as the United States represents its largest export market by far. Economists have warned that the range of tariffs threatened by Trump could push Canada into recession if maintained for an extended period.
Despite the escalating trade tensions, Trump issued another one-month reprieve on 25% tariffs targeting all Canadian non-energy imports just last Thursday. However, a day later, he suggested he might impose fresh tariffs specifically targeting Canadian dairy and lumber products, creating further uncertainty in the trade relationship.
In remarks aimed at American citizens, Joly emphasized that it was the U.S. administration—not Canada—that was driving up prices in the United States and threatening American jobs through import taxes.
The foreign affairs minister was scheduled to travel to Charlevoix, Quebec, on Wednesday to host a Group of Seven meeting of foreign ministers. Joly mentioned plans to meet with Marco Rubio and counterparts from the UK and Europe to discuss the tariffs. The meeting agenda also includes ongoing support for Ukraine, the situation in the Middle East, and stability in the Indo-Pacific region.
Saad Ullah
