President Trump’s 25% tariffs on steel and aluminium imports will affect Canada the most

President Donald Trump has announced plans to impose a 25% tariff on all steel and aluminium imports entering the United States, a move that is expected to have significant repercussions for Canada. Steel and aluminium exports from Canada, along with Mexico, are some of the largest sources of metal traded with the US, making the new tariffs a potential economic blow to these nations.

Trump, speaking aboard Air Force One, confirmed the decision on Monday, emphasizing that any steel entering the US would face a 25% tax. “Any steel coming into the United States is going to have a 25% tariff,” Trump stated, marking a dramatic escalation in the nation’s trade policy. The tariffs would extend beyond just Canada, with Trump signaling that he intends to announce reciprocal tariffs on all countries that tax US imports. He did not clarify which countries would be targeted or if any would be exempted from the measures.

The announcement is a continuation of Trump’s “America First” trade agenda, which has already led to retaliatory actions, particularly from China. It also builds on previous tariffs that Trump imposed during his first term on steel and aluminium imports from Canada, Mexico, and the European Union. Though an agreement reached with Canada and Mexico in 2019 ended these specific tariffs, the EU’s import taxes remained in place until 2021. Trump’s new proposals would revive these trade restrictions, impacting both global allies and competitors.

In Canada, political leaders quickly responded to the news. Doug Ford, the Premier of Ontario, sharply criticized Trump’s latest move, accusing the former president of creating “constant chaos” and endangering Canada’s economy. Ontario is home to much of Canada’s steel production, and the imposition of tariffs could lead to significant job losses and disruptions to the industry.

Catherine Loubier, a Canadian political adviser, noted the importance of the US-Canada trade relationship, emphasizing the deep interconnections between the two economies. “Hundreds of thousands of jobs in the US are linked to the steel and aluminium input from Canada,” Loubier said, warning that such tariffs would not benefit either country in the long run.

Other nations, including South Korea and Australia, are bracing for the potential impact. South Korean steelmakers saw their shares fall following Trump’s announcement, while Australian Prime Minister Anthony Albanese indicated his government would push for an exemption for Australian steel and aluminium, similar to the one granted during Trump’s first term.

As the global trade landscape shifts, these new tariffs highlight the continued volatility and uncertainty in US trade policy. With both economic and political consequences at stake, many are left wondering whether these aggressive measures will ultimately achieve their intended goals or further complicate international relations.