Trump Announces Additional Tariffs Amidst Trade War with Canada

In response to Ontario's 25% surcharge on electricity, Trump announces additional 25% tariff on Canadian steel and aluminum as well as additional tariffs on Canadian made automobiles

American President Donald Trump announced additional tariffs on Canadian aluminum and steel today, set to take effect on March 12, 2025. These will increase the total tariffs on Canadian steel and aluminum to 50%. He also promised additional tariffs on Canadian-made automobiles, effective April 2, 2025.

The American President has taken issue with a 25% tariff imposed on electricity exported to the United States, as well as tariffs on American dairy products. Ontario Premier Doug Ford announced the electricity tariff in response to the threat of tariffs from President Trump. Premier Ford has also objected to the American President's suggestion that Canada become America's fifty-first state.

President Trump has regularly cited tariffs on American dairy as one of his grievances. It’s important to note that these are known as over-quota tariffs, meaning they apply only to amounts exceeding a certain threshold. In 2022, Canada imported one hundred metric tons over quota in cheese and butter, which were subject to tariffs of 250% and 300%, respectively. In 2019 and 2022, over-quota tariffs of 250% were applied to excess fluid milk imports of 50 and 69 metric tons, respectively. These dairy tariffs likely limit the amount of dairy Canada imports from the United States and are part of the United States-Mexico-Canada Agreement (USMCA), which replaced NAFTA and was signed by President Trump in 2018.

According to Statistics Canada, in 2022, approximately 37% of Canadian-produced steel and aluminum was exported to the United States, 19% was used domestically, and the remaining 44% was exported internationally to non-American countries.

The Canadian automobile industry is even more reliant on American exports. In 2022, according to Statistics Canada and the Canadian Vehicle Manufacturers' Association, about 72% of automobiles manufactured in Canada were exported to the United States, 22% were sold domestically, and a mere 6% were exported to other countries.

This new round of tariffs will continue to cause hardships on both sides of the border. There has not yet been an official response from Ottawa regarding these new tariffs or what actions, if any, the federal government might take to support the affected Canadian industries. However, with Canada’s Justin Trudeau having officially stepped down and Prime Minister-Designate Mark Carney not yet sworn in, there may be some delay.

In Carney’s Liberal Party victory speech, he stated, “He’s attacking Canadian families, workers, and businesses, and we cannot let him succeed.” He pledged to maintain Canada’s retaliatory tariffs “until the Americans show us respect” and promised to use the proceeds from these tariffs to support Canadian workers.

Mark Carney posted on X (formerly twitter) the following shortly after the initial posting of this article:

President Trump’s latest tariffs are an attack on Canadian workers, families, and businesses. My government will ensure our response has maximum impact in the US and minimal impact here in Canada, while supporting the workers impacted.

My government will keep our tariffs on until the Americans show us respect and make credible, reliable commitments to free and fair trade.