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Removed US Threatens 50% Tariffs on Canadian Metals (Withdrawn)

Category: 🔩Steel/Aluminum
Scope: National Policy
Origin: US
Target: Canada

Effective: March 11, 2025

Est. Cost: Estimated 6–8 billion U.S. dollars annually in added costs to U.S. manufacturers; 2.5 billion Canadian dollars in export losses

Impacted Jobs: 8000 - Job losses in export-oriented Canadian metal sectors, particularly in Ontario and Quebec

Description:

A short-lived threat to double U.S. tariffs on Canadian steel and aluminum from 25% to 50%. Announced by President Trump via social media on March 11, 2025 amid escalating tensions, it was reversed within hours after Canada's Ontario province threatened counter-actions (an electricity surcharge). The White House confirmed that the increase would not proceed, sticking to the 25% metals tariff.
Impacts:
  • Doubling of existing tariffs on Canadian steel and aluminum
  • Higher input costs for U.S. manufacturing and infrastructure
  • Increased pressure on Canadian mills, smelters, and exporters
Causes Retaliation:
Analysis:

This aggressive escalation of U.S. metal tariffs targets Canada directly, undermining integrated supply chains. While it may benefit a narrow segment of U.S. primary metal producers, the broader cost to U.S. industry and consumers is steep. Canada absorbs another export hit, reinforcing its need to diversify trade partners.

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