Canada drops economic hammer on U.S.—New tariffs target billions in goods

Washington D.C. – Canada announced Wednesday that it will impose new trade duties on approximately $21 billion worth of U.S. goods in retaliation for President Donald Trump’s steel and aluminum tariffs.

The U.S. tariffs, which apply universally, have sparked criticism from Canada, the largest foreign supplier of steel and aluminum to the U.S. Experts warn that the increased costs will be passed on to consumers.

In a news conference, Canadian officials condemned the move, calling the tariffs “completely unjustified, unfair, and unreasonable.” François-Philippe Champagne, Canada’s minister of innovation, science, and industry, said the U.S. was injecting “disruption and disorder” into what has historically been a strong trade partnership.

Despite a tentative agreement reached Tuesday to resolve a separate dispute over electricity surcharges, Canada proceeded with its countermeasures. The Trump administration had threatened to double steel and aluminum tariffs to 50% if Ontario imposed a 25% surcharge on American electricity consumers.

Financial markets reacted negatively to the news. The Dow Jones Industrial Average fell into negative territory Wednesday, erasing earlier gains. U.S. automaker stocks also declined, with analysts at Barclays warning that past tariffs under Trump had led to weaker profitability for companies like Ford and GM.

Canada’s move follows the European Union’s recent announcement of tariffs on $28 billion worth of U.S. goods, including beef, motorcycles, whiskey, and American-made steel and aluminum. China has also signaled its intention to retaliate, raising fears of a global trade war that could slow economic growth.

While the Trump administration has downplayed concerns, officials have acknowledged an economic “transition” period as the president enforces his trade policies.