Canada Responds Strongly with $29.8 Billion CAD Retaliatory Tariffs on U.S. Imports

Canada to Impose $29.8 Billion in Retaliatory Tariffs on U.S. Products in Response to Trump’s Steel and Aluminum Tariffs

Canada is preparing to impose retaliatory tariffs on U.S. products worth $29.8 billion CAD, in response to U.S. President Donald Trump’s decision to increase tariffs on steel and aluminum imports. The decision took effect after the expiration of exemptions and tariff-free quotas, as part of Trump’s campaign to reshape the global trading system in favor of the U.S., according to a report from Reuters.

Complex Trade Escalation Between Canada and the U.S.

Canada is the largest foreign supplier of steel and aluminum to the United States, which adds complexity to the trade escalation between the two countries. This comes at a time when Canada is preparing for a leadership change, with Mark Carney set to take over as Prime Minister, replacing Justin Trudeau. Carney, who won the Liberal Party leadership in elections held last Sunday, stated that he would not engage with Trump until he officially assumes office. In contrast, Trump continued his controversial remarks on social media, saying he wanted Canada to become “our 51st state.”

Retaliatory Tariffs and Their Impact on Trade Relations

The retaliatory tariffs imposed by Canada are among the strongest trade actions in the history of relations between the two countries, raising questions about the future of the United States-Mexico-Canada Agreement (USMCA) and whether this escalation will lead to a deeper crisis in supply chains between the two nations. The trade tensions between Canada and the U.S. reflect disruption in global markets, as American companies rely heavily on Canadian imports to meet their manufacturing needs.

Expected Increase in Costs and Pressure on Businesses

These tariffs are expected to increase production costs for businesses on both sides of the border, potentially driving up prices and reducing profit margins. Many U.S. companies are concerned about the impact of these trade moves on their competitive edge in global markets.

---

Sources:

• Reuters report
• Mark Carney’s statements on Canadian leadership
• Trump’s remarks on social media