Business
Trump to Hit Canada with 25% Tariff on Steel and Aluminum
Donald Trump announced plans to impose a 25% tariff on all imported steel and aluminium entering the United States, a decision that will significantly affect Canada starting Monday. Canada exports $8.5 billion in steel and $11.36 billion in Aluminum annually.
The industry directly employs around 23,000 people in Canada, mostly in Ontario.
He also mentioned upcoming details on reciprocal tariffs for countries that tax U.S. imports, though he didn’t specify which nations would be impacted or if any exemptions would apply.
“If they charge us, we charge them,” Trump stated while speaking to reporters aboard Air Force One on a trip from his Mar-a-Lago resort in Florida to the Super Bowl in New Orleans.
Canada, the largest aluminium supplier to the U.S., and Mexico are key steel trading partners. In 2023, Canada exported $11.36 billion of aluminium to the United States. During Trump’s previous term, he introduced tariffs of 25% on steel and 10% on aluminium imports from Canada, Mexico, and the European Union.
A year later, the U.S. agreed with Canada and Mexico to lift those tariffs, though the EU tariffs remained until 2021.
On Monday, Trump said he would implement tariffs on “everybody” for steel and aluminium imports. “Any steel coming into the United States will have a 25% tariff,” he added.
Tariffs Jeapordise Caanada’s Economy
Ontario Premier Doug Ford criticized Trump’s actions, accusing him of creating economic instability. In an online post, Ford said Trump’s approach amounted to “shifting goalposts and constant chaos,” which he claimed jeopardized Canada’s economy. Ontario hosts much of the country’s steel production.
Trump’s remarks also led to a drop in the stock prices of major South Korean steel and automotive companies. South Korea, a key steel exporter to the U.S., saw shares in companies such as POSCO decline by 3.6%, Hyundai Steel by 2.9%, and Kia Corporation by 3.6% during early trading.
This move underscores Trump’s broader trade strategy, which has already drawn retaliation from China. Tariffs have been a central part of his economic plan, which he argues protects American jobs, fosters economic growth, and boosts tax revenue.
Earlier this month, Trump threatened a 25% import tax on goods from Canada and Mexico. However, the announcement was delayed for 30 days after discussions with Canadian Prime Minister Justin Trudeau and Mexican leadership.
Around the same time, Trump imposed a 10% tariff on Chinese imports, prompting Beijing to respond with its own set of tariffs that took effect on Monday.
Trump also hinted at more retaliatory tariffs, stating they could be announced “Tuesday or Wednesday” and would be implemented “almost immediately.” “The countries taking advantage of the U.S. will face reciprocal tariffs,” he told the BBC on Airforce One.
During his trip to New Orleans, Trump signed a proclamation naming February 9 as “Gulf of America” Day to commemorate his executive order renaming the Gulf of Mexico. Mexico contends this move violates international laws, asserting that no single country can rename a body of water governed by United Nations rules.
Trump declined to provide details when asked if he had spoken recently with Russian President Vladimir Putin. “I don’t want to talk about it, but I believe progress is being made,” he said, adding that a meeting with Putin would happen “at the appropriate time.”
Trump also reiterated controversial ideas, including his suggestion that the U.S. absorb Canada as the “51st state” and his claim of being “committed to buying and owning Gaza.” While likely intended for dramatic effect, these remarks continue to spark reactions domestically and abroad.
