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Canada to announce counter-tariffs in response to Trump's tax hike on metal imports
After Canada's Ontario province announced a surcharge on its electricity imports to the US, Donald Trump doubled tariffs on Canadian metal imports.
After the Donald Trump administration went ahead with levies on Canadian steel and aluminium imports, Canada will announce counter-tariffs on about C$30 billion ($20.8 billion) of US-made products on Wednesday, reported Bloomberg.
After Canada's Ontario province announced a surcharge on its electricity imports to the US, Donald Trump doubled tariffs on Canadian metal imports.
“I have instructed my Secretary of Commerce to add an ADDITIONAL 25% Tariff, to 50%, on all STEEL and ALUMINUM COMING INTO THE UNITED STATES FROM CANADA, ONE OF THE HIGHEST TARIFFING NATIONS ANYWHERE IN THE WORLD,” Trump posted on his Truth Social platform.
The tariffs came into effect today.
Since returning to office, Trump has implemented significant tariffs on key US trade partners, including Canada, Mexico, and China. While some reductions were made for neighbouring countries, he has pledged new levies to take effect from April 2.
The new tariffs are expected to hit Canada hard, as it supplies around 50 percent of US aluminium imports and 20 per cent of its steel imports, according to a recent analysis by EY’s chief economist, Gregory Daco.
Meanwhile, US Commerce Secretary Howard Lutnick said nothing would stop President Donald Trump's expanded 25% tariffs on steel and aluminium until U.S. domestic production is strengthened, and that Trump will add copper to his trade protections.
"So I think it's just to level-set things, make sure we know each other, and then we're going to negotiate with all of Canada," Lutnick said.
Donald Trump has also warned Canada that the US would increase tariffs on cars, forcing it to shut its automobile manufacturing business.
"If other egregious, long-time Tariffs are not likewise dropped by Canada, I will substantially increase, on April 2nd, the Tariffs on Cars coming into the U.S. which will, essentially, permanently shut down the automobile manufacturing business in Canada," Trump added.
Donald Trump had also questioned the US government's defence subsidies to Canada, saying it would be stopped unless the country became the United States' 51st state.
With inputs from AFP, AP, Reuters
