Canada is set to slap $20.7 billion in retaliatory tariffs following President Trump’s decision to put a 25% tariff on steel and aluminum, which went into effect Wednesday.
According to the Associated Press, a senior Canadian government official confirmed the action on Wednesday, speaking on the condition of anonymity because they were not permitted to talk prior to the announcement.
Canada exports more steel and aluminum to the United States than any other country.
The new federal duty follows a trade fight between the United States and Ontario earlier this week.
The province imposed a fee on electricity delivered to New York, Michigan, and Minnesota. In response, Trump promised to hike the 25% metals tariff. Ontario Premier Doug Ford then announced that the electricity tax will be postponed until a meeting with Commerce Secretary Howard Lutnick on Thursday.
The European Union (EU) imposed a similar punitive two-step action against the United States earlier in the day, hoping to capitalize on Trump’s international economic maelstrom, which economists believe will hike consumer costs across borders.
In reaction to Trump’s tariffs, the EU, which is made up of 27 partner nations, decided to implement a $28 billion countermeasure package. Their countermeasures are expected to take full effect by April 13.
“These tariffs are causing disruptions in supply systems. They create uncertainty for the economy. Jobs are at stake. Prices will rise. In both Europe and the United States. Ursula von der Leyen, president of the European Commission, said in a statement that the EU must take action to protect consumers and businesses.
“The countermeasures we are taking now are strong but proportionate. As the US imposes tariffs worth 28 billion dollars, we respond with countermeasures costing €26 billion. This corresponds to the economic extent of the US tariffs.
Trump has described prospective price increases as a “period of transition” required for the country’s progress, and he believes inflationary trends will be worthwhile in the long term.
The Hill has contacted the White House and Canada’s Minister of Export Promotion, International Trade, and Economic Development for comments.