Enhanced tariffs to be imposed on steel and aluminum products, as verified by the White House.
Tariff Showdown Between the U.S. and Canada
On June 4, 2025, Donald Trump, the American president, signed an executive order bumping up tariffs on steel and aluminum imports to a whopping 50%. This move comes after existing 25% tariffs that have been on Canadian imports since last March.
In the center of a protracted trade war, Trump's announcement to jack up these tariffs finally materialized. The new decree affirms that the president estimates this hike necessary to get the imports of these metals in check, preventing them from jeopardizing national security[3][4][5].
Trump believes these augmented tariffs will prove more effective in squashing the flood of cheap production from foreign countries, thus fortifying the competitiveness of U.S. steel and aluminum industries[1].
Meanwhile, the Canadian Minister of Canada-U.S. Trade, Dominic LeBlanc, and the Canadian Ambassador to the United States, Kirsten Hillman, discussed the matter with U.S. Secretary of Commerce Howard Lutnick during their meeting in Washington D.C.
As per predictions, the escalating tariffs could wreak havoc on Canada, with Canadian businesses opining that Ottawa should extend a helping hand[1]. In the U.S., such tariffs might get tricky. In 2023, an impressive 24% of the steel imported came from the neighboring country, while a quarter of all steel used in the U.S. originates abroad[1].
Frustrations Across the Border
The prime minister's office under Mark Carney views the tariffs on Canadian steel and aluminum as "illegal and unwarranted"[2]. They are actively engaged in intense negotiations to scrap them. Revenues procured through countermeasures on American products will allegedly be earmarked to aid Canadian workers and companies adversely affected by American tariffs.
The Bloc Québécois leader, Yves-François Blanchet, finds the decision shortsighted. "The federal government must support Quebec businesses negatively impacted by these tariffs, in the same vein as they've backed the Ontario automotive sector," he stated in a written declaration. The party calls for diverting the funds collected from counter-tariffs towards supporting businesses, namely by introducing a temporary wage subsidy program for workers on temporary layoffs[2].
Quebec Premier François Legault faulted the White House for the ill-considered measure, asserting it hurts our workers, the economy on both sides of the border, and small businesses[2]. Quebec Economy Minister Christine Fréchette emphasized that the U.S. is reliant on our supplies of critical and strategic minerals. We will keep reminding them of this[2].
Assessments from the Experts
The Canadian Aluminum Association deemed the 50% tariffs on Canadian aluminum to be inappropriate and damaging to the North American supply chain. "A 50% tariff on Canadian aluminum will result in reduced demand throughout the continent - regardless of where the metal is manufactured," said the association's president and CEO, Jean Simard[2].
The Federation of Canadian Municipalities deemed the tariff increase "simply devastating." "Municipalities are on the frontline of this trade war..." They urged a return to free and fair trade in North America[2].
The Quebec Chamber of Commerce Federation believes the new tariffs weaken our trade agreements. They asserted that resolving the trade war with the U.S. should be the top priority for Prime Minister Carney[2].
Several economists predict that this increase in tariffs could be extremely costly for Americans[1]. The price hike is evident in the Producer Price Index, a U.S. government indicator, which has spiked by 16% since Trump imposed tariffs.
In Trump's initial term, tariffs of 25% on steel and 10% on aluminum, levied for nearly a year, increased business costs and led to the loss of about 75,000 manufacturing jobs, according to the Tax Foundation[1].
With The Canadian Press and the French Press Agency
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- The escalation of tariffs on steel and aluminum imports from Canada, now at 50%, raises concerns about the health of businesses, particularly in Canada, where some policymakers see it as harmful and illegal.
- In the realm of finance, experts have predicted that the increased tariffs could prove costly for American businesses, given the significant amount of steel imported from Canada and potentially damaging the North American supply chain.
- Amidst the trade war between the U.S. and Canada, politicians and business leaders from both sides have advocated for their interests on the national and regional levels, highlighting the complexity and potential implications of policy-and-legislation decisions for general-news audiences.
