Canada issues counter-tariffs on U.S. steel in a retaliatory measures
Canada is slapping new counter-tariffs on $29.8 billion worth of American steel, aluminum and other products in retaliation for Donald Trump penalties on Canadian steel and aluminum.
The measures come on top of Canada’s first package of counter-tariffs on $30 billion worth of targeted and politically sensitive American imports.
U.S. tariffs on Canadian metals took effect at midnight and were levied on a broader range of products that use steel and aluminum in their manufacturing process than Canada expected.
Finance Minister Dominic LeBlanc, in announcing the new countermeasures, reserved the option of increasing the latest Canadian response.
The new reciprocal Canadian counter-tariffs will take effect March 13, and include tariffs against $12.6 billion worth of steel and $3 billion worth of aluminum imports from the U.S. and an additional $14.2 billion worth of other imports.
The list of additional products affected includes computers and servers, display monitors, sports equipment, cast iron products, tools and water heaters
Ottawa has said that if the U.S. does not drop its steel and aluminum tariffs, and proceeds with more of the penalties that Trump has threatened, it will roll out a full set of countermeasures on $155 billion worth of American imports — a response LeBlanc claimed is dollar-for-dollar, yet strong and proportionate.
Europe also responded to the Trump tariffs with a package of counter-tariffs on €26 billion worth of American products (about $40 billion Canadian).
LeBlanc and cabinet colleagues Foreign Affairs Minister Mélanie Joly and Industry Minister François-Philippe Champagne slammed the “unjustified” U.S. tariffs, saying the “day after day” roller coaster of tariff threats is hurting both countries.
Trump’s tariffs have introduced “disruption and disorder into an incredibly successful trading partnership,” LeBlanc said.
Joly said Canada is facing an “existential threat” from Trump who is using economic coercion as he continues to talk about making Canada the 51st state.
“It’s ultimately the future of our country that’s in doubt,” she said in French.
Canada previously addressed all of Trump’s so-called border concerns, and now she said, “the latest excuse is national security.”
Joly said she will make Canada’s case to Trump’s secretary of state, Marco Rubio, when the G7 foreign ministers meet in Charlevoix, Quebec later today and tomorrow.
Meanwhile, LeBlanc travels with Premier Doug Ford to Washington Thursday to meet Commerce Secretary Howard Lutnick, and said the purpose is not to kick-start new negotiations on the Canada-U.S.-Mexico free trade deal, but to deal with the immediate threats. If Trump wants to start renegotiations on the trade pact ahead of its scheduled review next year, Canada will be ready, he added.
For now, the priority is to lift the steel and aluminum tariffs, and avoid the pending larger threat of 25 per cent tariffs on all Canadian products, and possible additional “reciprocal tariffs” that Trump and Lutnick have said will come on April 2.
LeBlanc downplayed the Trump annexation threat, saying that “obviously outrageous comments” by the U.S. president are “not constructive” to the conversation he wants to have, but his focus is not on “exaggerated rhetoric.”
Speaking in Hamilton, where he met with steel workers, incoming prime minister Mark Carney said it’s a “difficult day for the industry because of these unjustified tariffs.”
Addressing the reciprocal tariffs announced by the Canadian government Wednesday, Carney said, “We don’t want to do this because we believe in open borders and free and fair trade, but we’re doing this in response.”
He said all tariff proceeds will go toward affected industries and workers, and the federal government will “double down” on its partnerships with Canadian industries.
“With respect to the United States and the relationship there, we understand, I understand, I respect President Trump’s concern for American workers and American families,” Carney said. “We respect his concern about fentanyl. It’s an issue for us here in Canada as well, and that’s why the Canadian government moved very quickly with a comprehensive response that has had a huge, huge impact in terms of controlling that issue and getting on top of that issue much better.”
“We are ready to sit down with the Americans, with the U.S. government,” he added. “I’m ready to sit down with President Trump at the appropriate time, under a position where there’s respect for Canadian sovereignty and we’re working for a common approach, a much more comprehensive approach for trade.”
This article was first reported by The Star
