The United States has officially doubled its tariffs on steel and aluminium imports to 50 per cent, escalating trade tensions with Canada and prompting sharp criticism from Prime Minister Justin Trudeau.The new rates, signed into effect Tuesday by President Donald Trump through an executive order, raise duties from the existing 25 per cent, citing national security concerns and the need to shield domestic industries. However, Canadian officials are calling the move “unlawful and unjustified,” warning that it could derail ongoing negotiations for a broader economic and security pact between the two countries.
“These tariffs serve no legitimate purpose and directly harm both our economies,” said Carney, confirming that Ottawa is in urgent talks with Washington to reverse the decision.
The steep hike notably excludes imports from the United Kingdom, which will continue to face the original 25 per cent duty as the U.S. finalizes a separate trade agreement with London.
Canada is the largest foreign supplier of steel to the United States, and industry leaders north of the border warn the new measures could cause serious economic fallout. The Canadian Steel Producers Association said in a statement that the increased duties could lead to job losses, decreased investment, and long-term damage to cross-border trade.
Economists on both sides of the border caution that the tariff hike may ultimately backfire by driving up costs for U.S. manufacturers and consumers. Currently, roughly 25 per cent steel used in the U.S. is imported, much of it from Canadian mills.With tensions rising and economic uncertainty mounting, Canadian officials say all options are on the table if the tariffs aren’t rolled back soon.