Toronto, Canada – In response to President Donald Trump’s implementation of universal steel and aluminum tariffs, Canada announced new trade duties on approximately $21 billion worth of U.S. goods on Wednesday. The U.S.’s largest foreign supplier of steel and aluminum, Canada’s decision to impose retaliatory duties comes amid concerns from experts that Trump’s tariffs will ultimately be passed down to consumers.
During a news conference on Wednesday, a Canadian government spokesperson criticized Trump’s tariffs as “completely unjustified, unfair, and unreasonable.” François-Philippe Champagne, Canada’s minister of innovation, science, and industry, expressed disappointment in the disruption caused by the U.S. administration’s actions on the successful trading partnership between the two countries, warning of increased costs for everyday goods for both Canadians and American households.
Despite a recent detente reached on Tuesday regarding the threats of a 25% surcharge on American consumers of Canadian electricity, Canada proceeded with announcing retaliatory measures. Trump had previously threatened Canada with escalating steel and aluminum tariffs to 50% if the province of Ontario moved forward with the surcharge. The Dow Jones Industrial Average experienced fluctuations, dipping into negative territory on Wednesday after initially showing gains following a positive inflation report.
Following the European Union’s lead, Canada’s retaliatory measures now join those targeting a variety of U.S. goods worth $28 billion, including beef, motorcycles, whiskey, as well as American-made steel and aluminum. The announcement had immediate consequences, with shares in U.S. automakers taking a hit. Analysts from Barclays financial services group noted that in past instances where Trump had implemented similar duties, major automakers such as Ford and GM reported decreased profitability.
As this story continues to develop, it is important to stay informed about the ongoing trade disputes between the U.S. and its trading partners. Keep up to date with the latest developments and impacts on the global economy.