3 June: U.S. President Donald Trump has signed a new executive order that significantly increases existing tariffs on steel and aluminum imports, raising them from 25 per cent to 50 per cent. The change will come into effect at midnight on June 4, according to the official document released after the close of global financial markets.
The decision, described in the order as a necessary measure to ensure national security and strengthen the U.S. manufacturing base, argues that the earlier tariff rates had not yet delivered the desired level of domestic production or utilization needed to support long-term industry stability and defense requirements.
“I have concluded that raising the tariffs already in place will give greater backing to the U.S. steel and aluminum sectors and help counteract the national security risks linked to foreign imports,” the order reads.
The tariff hike is expected to have severe economic repercussions in Canada, particularly in Ontario and Quebec. Ontario is known as a key hub for steel manufacturing, while Quebec is a major global player in aluminum production. Industry stakeholders are warning of serious disruptions in the supply chain affecting businesses on both sides of the border.
Prime Minister Mark Carney’s office condemned the move, labeling the increased duties as “unlawful and unjustified.” In a strongly worded statement, the government confirmed it is involved in urgent negotiations aimed at reversing the tariff hike and is also accelerating efforts to strengthen internal trade within Canada. As part of this plan, the Carney government is aiming to eliminate interprovincial trade barriers and reduce reliance on U.S. goods by July 1.
Industry Minister Mélanie Joly, speaking in the House of Commons, expressed firm support for using domestically sourced materials for Canadian infrastructure initiatives. “We will prioritize Quebec and Canadian steel and aluminum for our national projects. This will protect jobs, boost our economy, and send a clear message to Washington,” Joly stated.
The Canadian Steel Producers Association (CSPA) responded with strong concern, warning of devastating impacts on the entire supply chain. Catherine Cobden, President and CEO of the CSPA, said the tariff escalation “will severely disrupt business operations and lead to long-term damage for producers and consumers in both countries.”
Canada remains the United States’ largest supplier of steel, accounting for nearly 25 per cent of total U.S. imports in 2023. The original 25 per cent tariffs, imposed in March 2025, had already prompted Ottawa to retaliate with a countermeasure targeting nearly $30 billion worth of U.S. products.
