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Active Canada Adds C$29.8B in Tariffs Targeting US Metals

Category: 🔧Steel/Aluminum and Other
Scope: National Policy
Origin: Canada
Target: US
Response to: US imposes 25% Tariffs on Canadian Steel & Aluminum

Effective: March 13, 2025

Est. Cost: 7.45 billion Canadian dollars annually if all targeted goods are still imported

Impacted Jobs: 10000 - Preservation of primary metal jobs; strain on metal-using sectors like auto and construction

Description:

Second round of Canadian counter-tariffs: 25% duties on an additional C$29.8 billion of U.S. goods. Primarily targeted U.S. steel (C$12.6 B) and aluminum (C$3 B) exports to Canada, plus other products (C$14.2 B worth) such as cast iron articles, machinery (e.g. computers), and sporting equipment. These took effect March 13, 2025.
Impacts:
  • Increased prices for Canadian manufacturers relying on U.S. metal
  • Loss of market for U.S. steel and aluminum producers
  • Substitution of U.S. goods with domestic or other foreign sources
Analysis:

This countermeasure hits the U.S. metal industry hard while propping up Canadian production. Though it raises costs for Canadian manufacturers, it reflects a strategic retaliation pattern and is impactful due to the U.S.'s dependency on the Canadian market. Its scope is narrow but deep, targeting core trade vulnerabilities.

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