By The Rio Times | Created at 2025-03-12 19:25:09 | Updated at 2025-03-13 00:50:36
6 hours ago
Canadian Finance Minister Dominic LeBlanc announced today that Canada will impose 25% retaliatory tariffs on $29.8 billion CAD ($21 billion USD) of US imports effective March 13, 2025.
The latest measures target $12.6 billion in steel products, $3 billion in aluminum items, plus $14.2 billion in other goods including computers, sports equipment, and cast iron products.
These new tariffs follow Canada’s initial $30 billion CAD countermeasures implemented on March 4 when President Trump’s 25% steel and aluminum tariffs took effect.
Canada plans to expand tariffs to an additional $125 billion CAD of American goods on March 25 unless the US reverses course. “We will protect our economy and Canadian jobs,” declared LeBlanc during his announcement.
The Minister emphasized Canada‘s dollar-for-dollar strategy aims to pressure Trump’s administration to end what Canadian officials view as unjustified trade restrictions.
Canada Escalates Trade Conflict with $29.8 Billion in New Tariffs on U.S.Goods. (Photo Internet reproduction)Canada supplies 60% of US aluminum imports and 40% of steel imports, creating deeply integrated supply chains across North America. The current trade dispute threatens these connections, potentially raising prices for consumers in both nations while disrupting manufacturing operations.
Escalating Trade Conflict Between Canada and the U.S.
The escalating conflict briefly intensified when Ontario imposed a 25% surcharge on electricity exports to Michigan, Minnesota and New York on March 10. Trump immediately threatened to double metal tariffs to 50%, prompting Ontario Premier Doug Ford to suspend the electricity tax.
Trade experts warn the tariffs could shrink Canada’s GDP by 2.6%, costing Canadian households approximately $1,900 annually. US consumers face potential price increases on everything from cars to groceries. Yale University estimates that a typical American household could lose $1,200 in purchasing power.
Trump temporarily exempted USMCA-compliant trade from tariffs until April 2, affecting roughly 38% of Canadian exports to the US. Both Canada and Mexico maintain these actions violate the trade agreement ratified during Trump’s first term.
The European Union joined Canada’s pushback by announcing its own $28 billion in retaliatory tariffs set to begin next month. Canada and the US maintain the world’s most comprehensive trading relationship.
Approximately $2.5 billion in goods and services cross their border daily. Officials from both countries plan to meet this week, seeking potential resolutions to the deepening economic standoff.
