The United States is set to impose a combined 50% tariff on Canadian steel and aluminum, as President Donald Trump doubles down on his protectionist trade policies, a White House official confirmed Tuesday.
The decision follows Trump’s executive order signed on Monday, imposing a 25% tariff on all steel and aluminum imports, including those from Canada, starting March 12. However, an official clarified that this new levy will be stacked on top of earlier proposed tariffs, effectively doubling the trade penalties.
Canada Ramps Up Pushback Against Tariff Hike
Amid growing trade tensions, Prime Minister Justin Trudeau met with U.S. Vice-President JD Vance in Paris during a global AI summit to voice concerns about the economic impact of these tariffs. Trudeau highlighted the harm it could inflict on U.S. industries, particularly in Ohio, where Vance previously served as a senator.
Meanwhile, Canadian premiers have launched a coordinated diplomatic effort in Washington, urging American business leaders and lawmakers to oppose the tariff escalation.
Trudeau labeled the tariffs “unacceptable”, vowing to work with international partners to mount a strong response. He has also warned that the stacked 50% levy could significantly damage North American supply chains.
Ontario Premier Doug Ford Appeals to U.S. Lawmakers
Ontario Premier Doug Ford, addressing the U.S. Chamber of Commerce, urged American business leaders to pressure Trump’s administration to reconsider the decision.
“Let’s stick together and please get the message to President Trump—this is not a good idea for either country,” Ford stated.
Ford initially hinted at retaliatory measures, including limiting energy exports to the U.S. However, he has now pivoted toward deepening Canada-U.S. economic ties, proposing a “Fortress Am-Can” strategy to reduce reliance on Chinese trade.
Uncertainty Looms Over Future Trade Relations
Trump has also threatened a 25% tariff on all Canadian imports and a 10% duty on energy exports, suggesting these could take effect in early March.
Despite months of diplomatic outreach from Canada, it remains unclear what Trump seeks to achieve with these tariffs. His initial justification was tied to border security and fentanyl concerns, but his criticisms have expanded to include defense spending and trade deficits.
Adding to uncertainty, Trump recently remarked that he is serious about making Canada the 51st U.S. state, further fueling tensions.
Experts Warn of Economic Fallout
Eric Miller, a U.S.-Canada trade consultant, believes the tariffs are inevitable but suggests market instability might force Trump to reconsider.
“If stock prices dip and costs for American industries rise, Trump may feel the pressure to adjust,” Miller noted. However, he emphasized that Canada should brace for short-term economic pain.
Ford, meanwhile, believes Trump’s tariff threats are a negotiating tactic ahead of the 2026 Canada-U.S.-Mexico Agreement (CUSMA) review. While Canada negotiated exemptions from past Trump-era tariffs, the latest move undoes those past agreements.
As the March 12 deadline looms, Canada faces a tough diplomatic challenge to prevent a full-scale trade war with its largest trading partner.
