Canada is expected to impose $20.7 billion in retaliatory tariffs following President Trump’s decision to impose a 25% tariff on steel and aluminum, which went into effect Wednesday.
According to the Associated Press, a senior Canadian government official confirmed the move on Wednesday, speaking on the condition of anonymity because they were not authorized to speak prior to the announcement.
Canada exports more steel and aluminum to the United States than any other country.
The new federal tariff follows a tariff spat between the United States and Ontario earlier this week.
The province imposed a surcharge on electricity supplied to New York, Michigan, and Minnesota. In response, Trump promised to double the 25% metals tariff. Ontario Premier Doug Ford then announced that the electricity surcharge would be postponed until a meeting with Commerce Secretary Howard Lutnick on Thursday.
The European Union (EU) imposed a similar punitive two-step measure against the United States earlier in the day, hoping to capitalize on Trump’s international economic whirlwind, which analysts predict will raise consumer prices across borders.
In response to Trump’s levies, 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 chains. 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 today are strong but proportionate. As the US imposes tariffs worth 28 billion dollars, we respond with countermeasures worth €26 billion. This corresponds to the economic scope of the US tariffs.
Trump has described potential price increases as a “period of transition” required for the country’s growth, and he believes inflationary trends will be worthwhile in the long run.
The Hill has contacted the White House and Canada’s Minister of Export Promotion, International Trade, and Economic Development for comments.