Canada has announced C$29.8 billion in retaliatory tariffs on the United States in response to President Donald Trump’s decision to impose 25% tariffs on steel and aluminum imports.
A senior Canadian official, who declined to be named, confirmed the retaliatory measures on Wednesday against Trump’s renewed protectionist trade policies.
The move comes as prior exemptions, duty-free quotas, and product exclusions expired, allowing U.S. tariffs on foreign metals to take full effect.
The United States relies heavily on Canada as its largest foreign supplier of steel and aluminum, and the newly imposed duties have further strained trade relations.
Escalation Amid Canadian Leadership Transition
The latest trade confrontation coincides with a political transition in Canada as Prime Minister Justin Trudeau prepares to hand over power to his successor, Mark Carney, who recently won the Liberal Party leadership race.
Carney, who is set to take office later this week, has not yet spoken directly with Trump but has signaled his commitment to defending Canadian economic interests.
Meanwhile, Trump took to social media to renew his controversial claim that Canada should become “our cherished Fifty-First State,” further fueling political and diplomatic tensions.
Rising Trade Friction Between Ottawa and Washington
This latest round of tariff retaliation follows years of trade disputes between the U.S. and Canada, dating back to Trump’s initial introduction of steel and aluminum tariffs in 2018.
While previous negotiations had led to partial exemptions and trade agreements, the Trump administration’s decision to restore and expand the tariffs has revived concerns over economic fallout for industries on both sides of the border.
Canada’s countermeasures are expected to target key U.S. industries, though specifics on the affected products remain undisclosed. Analysts suggest that agriculture, manufacturing and consumer goods could be among the sectors most impacted.
Economic Impact and Market Reactions
The trade dispute comes at a time of economic uncertainty, with investors closely monitoring the potential implications of retaliatory tariffs on supply chains, inflation and market stability.
Financial analysts warn that increased trade barriers could disrupt businesses that rely on cross-border supply chains, affecting everything from automobile production to construction materials and consumer products.
Despite concerns over rising tensions, the Canadian government maintains that its retaliatory actions are necessary to protect domestic industries and push back against unilateral U.S. trade policies.
As Canada and the U.S. brace for another round of trade negotiations, global markets remain on edge, watching how the escalating dispute between the two economic allies will unfold.
