US-Canada Tariff War: Canada Plans Counter-Tariffs on American Goods

According to Bloomberg, Canada is set to announce counter-tariffs on approximately C$30 billion ($20.8 billion) worth of US-made goods on Wednesday, after the Donald Trump administration's imposition of duties on Canadian steel and aluminum imports.

Donald Trump raised duties on Canadian metal imports after the province of Ontario put a tax on its energy shipments to the United States.

Higher Tariffs on Canada by Trump

Trump wrote on his Truth Social platform, "I have directed my Secretary of Commerce to impose an additional 25% tariff, up to 50%, on all steel and aluminum entering the United States from Canada, one of the highest tariffing nations anywhere in the world."

The tariffs came into force on March 12, 2025,

Trump has imposed substantial tariffs on important US trading partners, such as China, Canada, and Mexico, since taking office again. He promised new taxes to go into place on April 2, even though some reductions were made for neighboring countries.

Impact of Tariffs on Canada

According to a recent analysis by Gregory Daco, chief economist at EY, Canada is projected to be severely impacted by the new tariffs because it provides around 50% of the US's imports of aluminum and 20% of its imports of steel.

Additionally, Donald Trump has threatened to raise car tariffs in the US, causing Canada to close its auto manufacturing facility.

Trump warned that if Canada does not remove other unfair long-term tariffs, he will raise tariffs on cars entering the U.S. on April 2, which could permanently harm Canada's automobile industry.

US Warning to Canada

Meanwhile, U.S. Commerce Secretary Howard Lutnick stated that President Donald Trump will include copper in his trade safeguards and that nothing would stop his increased 25% tariffs on steel and aluminum until domestic production in the United States is enhanced.

Lutnick said the goal is to get on the same page, understand each other, and then start negotiations with all of Canada.

In addition, Donald Trump had questioned US defense contributions to Canada, threatening to halt them unless Canada became the 51st state in the union.