Canada imposes 50% tariffs on US steel
Canada announced 50% tariffs on U.S. steel and aluminum products effective Sept. 8, matching U.S. Section 338 and 232 measures and covering $27.6 billion in imports. The move follows a failed trade talks and includes a $7.5 billion support package for affected workers.
Canada announced on Tuesday that it will impose up to 50-percent tariffs on a wide range of U.S. goods, including more than 300 steel and aluminum items, effective Sept. 8. The counter-measures mirror the U.S. Section 338 and Section 232 tariffs and cover $27.6 billion in imports such as seafood, dairy products, flooring, kitchen appliances and lawnmowers.
Tariff Escalation
The new Canadian tariffs will raise the rate on U.S. steel and aluminum from the current 25 percent to 50 percent. Derivative products will face a 25 percent rate. The escalation follows President Donald Trump’s recent proclamations that added a 50 percent tariff on Canadian imports under Section 338, which took effect Aug. 22.
| Category | Tariff Rate |
|---|---|
| U.S. steel and aluminum | 50% |
| Steel and aluminum derivatives | 25% |
| Seafood, dairy, flooring, kitchen appliances, lawnmowers | 50% |
Scope of Canadian Countermeasures
Canada’s Department of Finance said it had negotiated “intensively and in good faith” with the United States but found the new terms unacceptable. The government described the tariffs as a necessary response to protect a level playing field for Canadian businesses. The counter-measures also cover $27.6 billion in imports, as stated by the government.
Industry Reactions
Metal industry experts were surprised by the escalation. Market research firm World Steel Dynamics had predicted a possible reduction to a 25 percent tariff, which would have been the first such exception made by the Trump administration. The prediction was not realized.
Phillip Bell, president and CEO of the Steel Manufacturers Association, expressed optimism in a July 23 op-ed that the U.S. decision not to extend the USMCA for an additional 16 years was a “negotiating posture, not a trade collapse.” He suggested it could open the door for improvements to the USMCA and new bilateral agreements.
U.S. steel and aluminum trade groups remained largely quiet after Canada’s announcement.
Support Measures
In addition to the tariffs, Canada introduced a $7.5 billion package to support workers and businesses affected by U.S. tariffs. For more details see stats.
Trump took to his Truth Social platform to criticize Canada, claiming the country has been “ripping off” the U.S. for decades and threatening a 50 percent tariff on all Canadian automotive imports. He also joked about renaming Lake Ontario to Lake America.
The U.S. and Canada have been in a trade standoff since the U.S. imposed Section 338 tariffs, and the current U.S.-Mexico-Canada Agreement remains in force through July 2036.
For industry responses, see squad.
