Canada Announces Retaliatory Tariffs on U.S. Imports Amid Ongoing Trade Tensions
Reuters
Canada will impose C$29.8 billion in retaliatory tariffs on U.S. goods, effective March 13, in response to U.S. President Donald Trump's steel and aluminum tariffs, announced Canadian Finance Minister Dominic LeBlanc on Wednesday, March 12.
The tariffs come after the expiration of previous exemptions, duty-free quotas, and product exclusions, as Trump moves forward with his plan to reshape global trade rules in favor of the United States. Canada, the largest foreign supplier of steel and aluminum to the U.S., is now targeting steel products worth C$12.6 billion, aluminum products worth C$3 billion, and an additional range of U.S. goods valued at C$14.2 billion. Among the products affected by the counter-tariffs are computers, sports equipment, and cast iron items.
LeBlanc confirmed that this move is in direct response to the U.S. tariffs, which took effect on March 12, marking an escalation in the ongoing trade conflict. The Canadian government’s approach follows a dollar-for-dollar principle, ensuring that retaliatory measures mirror the scope of U.S. tariffs.
In parallel, Canada's Foreign Minister, Mélanie Joly, condemned Trump’s recent remarks, including his suggestion that the U.S. should annex Canada as its 51st state. Speaking at a press conference, Joly emphasized that Canadians would not be intimidated by economic coercion, rejecting Trump's characterization of the border as a "fictional line."
Joly also pointed out that the economic strain caused by rising prices for goods like groceries and gasoline was a direct result of U.S. tariffs, not Canada’s actions. "There are no winners in a trade war," she said, adding that Canada would work with European allies to pressure the U.S. to end its tariff measures.
Meanwhile, Canada's Minister of Innovation, Science, and Industry, François-Philippe Champagne, expressed that while Canada did not wish to engage in retaliatory measures, it had been forced to act in defense of its economy. He noted that Canada was not alone in opposing U.S. tariffs, with the European Union and Japan also reacting against what they considered unjustified trade actions.
The trade dispute coincides with a shift in Canadian leadership. Prime Minister Justin Trudeau is preparing to hand over power to his successor, Mark Carney, who won the Liberal Party leadership race on Sunday. Carney, who is set to take office this week, stated that he would not engage with Trump until officially sworn in. Meanwhile, Trump again reiterated his desire for Canada to become the "51st state" in a post on social media.
As tensions mount, both sides are bracing for further developments in this high-stakes trade conflict.
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