Canada announces response to U.S. tariffs on steel and aluminum

In response to the United States’ recent imposition of 25 per cent tariffs on Canadian steel and aluminum products, the Canadian government has announced a series of retaliatory measures.

Finance Minister Dominic LeBlanc, Foreign Affairs Minister Mélanie Joly, and Innovation Minister François-Phillipe Champaign outlined the country’s strategy to counter these tariffs, which they described as unjustified.

Starting at 12:01 AM EST on March 13, 2025, Canada will implement 25 per cent reciprocal tariffs on U.S. steel and aluminum products valued at $15.6 billion, along with additional tariffs on other U.S. goods worth $14.2 billion. This brings the total value of the countermeasures to $29.8 billion. The targeted products include tools, computers, display monitors, sports equipment, and cast-iron items.

These new tariffs are in addition to the 25 per cent counter tariffs Canada imposed on $30 billion worth of U.S. imports in response to the U.S. International Emergency Economic Powers Act (IEEPA) tariffs enacted on March 4, 2025. If the U.S. does not address these tariffs and other threats, Canada plans to expand its countermeasures on April 2, following a public comment period.

The Canadian government is also evaluating the impact of U.S. tariffs on the steel and aluminum content in certain derivative products and may impose further counter tariffs if necessary.

To support Canadian workers and businesses affected by these measures, the government has introduced several initiatives. These include the Trade Impact Program through Export Development Canada, favourable loans from the Business Development Bank of Canada, and new financing options from Farm Credit Canada. Additionally, temporary flexibilities have been added to the EI Work-Sharing Program to help employees and employers cope with reduced business activity.

The new tariffs will not apply to U.S. goods already in transit to Canada when the countermeasures take effect.