Trump to Announce New Steel and Aluminum Tariffs, Canada Takes Wait-and-See Approach
U.S. President Donald Trump is set to formally announce a 25 per cent tariff on all steel and aluminum imports on Monday, Trump made the announcement aboard Air Force One while on his way to New Orleans to watch the Super Bowl. Unlike previous tariffs targeting specific countries, this round of duties will apply to all imports of the metals into the U.S.
Canada is the largest supplier of steel and aluminum to the U.S. while Mexico also supplies a large quantity of the two metals. Ottawa has yet to issue an official response, however, Innovation Minister François-Philippe Champagne took to social media, warning that the tariffs would harm the American defence and auto industries. The announcement comes just one week after Trump floated a blanket 25 per cent tariff on Canadian goods, only to walk back the proposal amid economic concerns and pressure from Ottawa.
Trump has a history of imposing trade measures on steel and aluminum. In 2018, he enacted 25 and 10 per cent duties on the metals, citing national security. Canada initially secured an exemption but was later hit by the tariffs on May 31, 2018, prompting retaliatory duties on American products such as Florida orange juice. A deal was eventually reached in 2019 to lift the tariffs, preventing surges in Canadian and Mexican steel and aluminum imports.
Adding to the controversial announcements, Trump reiterated his stance that Canada would be “better off” as a U.S. state. In a Fox News interview aired before Sunday’s football game, Trump claimed, without evidence, that the U.S. loses $200 billion annually to Canada. Prime Minister Justin Trudeau recently told a gathering of business leaders that Trump’s statehood remarks are “a real thing,” raising concerns over the future of Canada-U.S. trade relations.