Canada's reaction to the U.S. imposed taxes on steel and aluminum
In response to the 25% tariffs imposed by U.S. President Donald Trump on steel and aluminum imports, Canada has implemented a series of measures aimed at protecting its domestic industry and maintaining a balanced trade relationship.
On the day following the U.S. tariffs coming into effect in March 2025, Canada retaliated with a 25% counter-tariff on a wide range of American goods, totalling $29.8 billion in value, including $15.6 billion worth of steel and aluminum products. The tariffs cover over 530 product categories, ranging from gold and jewelry to scrap metal, ceramics, iron products, umbrellas, candles, screws, pipes, railway tracks, stoves, and barbecues.
When the U.S. doubled its tariffs to 50% on all steel and aluminum imports in June 2025, Canada chose not to immediately match this escalation, maintaining its 25% tariffs during ongoing negotiations.
In addition to the retaliatory tariffs, Canada has introduced protectionist policies. On June 19, 2025, the Canadian government announced new federal procurement rules that restrict access in Canadian government contracts to domestic suppliers and trusted trading partners, thereby shielding Canadian companies from increased foreign competition. The government has also pledged to implement policies addressing overcapacity and unfair trade practices in the steel and aluminum sectors.
Prime Minister Mark Carney has indicated that Canada would reassess and adjust its counter-tariffs on July 21, 2025, in accordance with the progress of trade negotiations with the U.S. administration. This approach reflects a willingness to base tariff adjustments on diplomatic efforts rather than immediate tit-for-tat retaliation.
Although explicit business-specific relief programs are not detailed in the latest sources, Canada has emphasized policies to protect domestic producers and suppliers, suggesting a focus on structural and regulatory supports rather than direct subsidies or targeted financial aid.
In other related news, the Canadian government has announced temporary changes to the employment insurance program, waiving the one-week waiting period for applicants and allowing businesses to reduce their hours without laying off workers.
This report was published by The Canadian Press on July 16, 2025.
- The Canadian government, in response to the 25% tariffs imposed by the U.S. government, retaliated with a 25% counter-tariff on a collection of American goods, totaling $29.8 billion, including steel and aluminum products.
- In addition to the retaliatory tariffs, Canada has introduced protectionist policies, such as new federal procurement rules that restrict access to Canadian government contracts for foreign suppliers.
- The Canadian government has also announced plans to implement policies addressing overcapacity and unfair trade practices in the steel and aluminum sectors.
- Prime Minister Mark Carney has mentioned that Canada will reassess and adjust its counter-tariffs on July 21, 2025, based on the progress of trade negotiations with the U.S. administration.
- Although specific business-related relief programs are not detailed, Canada has emphasized policies to protect domestic producers and suppliers, suggesting a focus on structural and regulatory supports.
- In other related news, the Canadian government has announced temporary changes to the employment insurance program, waiving the one-week waiting period for applicants and allowing businesses to reduce their hours without laying off workers.
- This report was published by The Canadian Press on July 16, 2025, covering general-news topics including politics, economy, business, finance, media, and the community of Toronto.
