Related videos:
The Government of Canada announced on Wednesday a series of trade retaliations against the United States in response to the decision by the Donald Trump Administration to impose tariffs of 25% on imports of steel and aluminum.
Starting Thursday, Canada will impose a 25% tariff on U.S. goods worth CAD 29.8 billion (USD 20.7 billion).
The measure was announced by the Ministers of Finance, Dominic LeBlanc; Foreign Affairs, Mélanie Joly; and Industry, Francois-Philippe Champagne.
The reprisals will impact 12.6 billion Canadian dollars in imports of U.S. steel, as well as an additional 14.2 billion Canadian dollars in products such as tools, computers, sports equipment, and iron stamp products.
These new tariffs are in addition to those already implemented by Canada in early March, which taxed 30 billion Canadian dollars on U.S. products, including alcoholic beverages, orange juice, and household appliances.
In total, Canada is imposing tariffs of 25% on approximately 60 billion Canadian dollars in imports from the U.S.
Minister LeBlanc emphasized that his government could impose more tariffs if the Trump Administration does not reconsider its position.
"We will continue to work tirelessly to convince Washington to remove these unjustified tariffs," he stated.
For her part, Foreign Minister Mélanie Joly highlighted that this will be a priority topic at the G7 ministers' summit in Charlevoix.
"In all my meetings, I will address this matter to coordinate a response with our European partners and to push the U.S. This conflict is not only economic; it also affects Canada's sovereignty," Joly stated.
President Donald Trump heightened tensions by announcing an increase in tariffs on Canadian steel and aluminum to 50%, in response to the decision by the province of Ontario to raise the price of electricity exported to the U.S. by 25%.
However, Canada withdrew that measure, but Trump insists on his tariffs in hopes that his neighbor will agree to become the 51st state of the U.S.
Trump also demanded that Canada remove a 200% tariff on U.S. milk that exceeds an annual import quota.
He warned that if his demands were not met by April 2, he would impose high tariffs on Canadian automobiles, which would "permanently destroy Canada's automotive industry."
Canada, which exported vehicles worth 35 billion dollars to the U.S. in 2023, could face serious economic consequences if these new tariffs are implemented.
In an unexpected turn, Trump revisited his idea that Canada "should become the 51st state of the U.S."
He argued that "the United States subsidizes Canada's security with $200 billion a year in defense," and that the annexation would eliminate trade issues.
"This would eliminate all tariffs and reduce taxes for Canadians. It would be a beneficial solution for everyone," stated the leader, who even suggested keeping the Canadian national anthem as a sign of respect.
Former Canadian Prime Minister Justin Trudeau strongly rejected this suggestion. "You cannot take ownership of our country," he declared on social media.
Frequently Asked Questions about Trade Tensions between the United States and Canada
Why did Canada impose trade retaliations against the United States?
Canada imposed trade reprisals in response to the 25% tariffs imposed by the Donald Trump Administration on Canadian steel and aluminum imports. This measure was deemed unjustified by the Canadian government, which decided to respond with equivalent tariffs to protect its economy and sovereignty.
What products are affected by Canada's new tariffs on the U.S.?
Canada's tariffs impact U.S. products worth 29.8 billion Canadian dollars, including steel, tools, computers, sporting goods, and iron stamping products. These tariffs add to the previous taxes on alcoholic beverages, orange juice, and appliances.
What economic consequences could Canada face due to Trump's tariffs?
Canada could suffer serious economic consequences if tariffs on Canadian cars are implemented, as the country exported vehicles worth $35 billion to the U.S. in 2023. These tariffs threaten to dismantle the Canadian automotive industry and significantly impact its economy.
What stance has Canada taken regarding Trump's annexation proposal?
The former Prime Minister of Canada, Justin Trudeau, strongly rejected the suggestion of annexation. He stated that "you can't appropriate our country," reaffirming Canadian sovereignty and dismissing any attempts at annexation by the United States.
Filed under:
