On Wednesday, Canada announced a 25% retaliatory tariff on $21 billion worth of U.S. products in response to the U.S. imposing similar tariffs on steel and aluminum.
Canada’s new tariffs will apply to U.S. steel, aluminum, computers, sports equipment, and cast iron. This announcement is separate from Canada’s 25% retaliatory tariffs on $30 billion worth of U.S. products on February 3.
During a press conference, Canadian Finance Minister Dominic LeBlanc noted that the U.S. started implementing its tariffs overnight and confirmed that Canada would retaliate. He explained that the new tariffs would take effect on Thursday.
Although the U.S. tariffs apply to all countries, Canada is particularly affected, as it is the largest exporter of steel and aluminum to the U.S. Canadian Foreign Minister Mélanie Joly emphasized that this issue concerns Canada’s future.
In a press conference on Tuesday, Joly stated that the policy disruptions since Donald Trump’s inauguration have shocked the Canadian economy and created uncertainty about the country’s future.
Since winning the presidential election on November 5 last year, Trump has referred to Canada as the 51st state of the U.S. and suggested that the two countries should merge. Joly asserted, “It is about the future of our country. Canadian sovereignty and identity are nonnegotiable. Canadians have had enough, and we are a strong country. We’ll defend our sovereignty, we’ll defend our jobs, and we’ll defend our way of living,” vowing retaliatory action.
However, negotiations continue behind the scenes. Ontario Premier Doug Ford, who provides electricity to 1.5 million households in Minnesota, Michigan, and New York, will meet with U.S. Secretary of Commerce Howard Lutnick in Washington this Thursday. On Wednesday, Ford met with incoming Prime Minister Mark Carney to discuss strategies for negotiations with the U.S.
