Canada Imposes $20.7 Billion in Tariffs on U.S. in Response to Trump’s Trade Measures

Canada has announced $20.7 billion ($29.8 billion CAD) in tariffs against the United States following Donald Trump’s decision to impose a 25 percent tariff on all steel and aluminum imports from Canada.

The Canadian government retaliated today (March 12) after Trump’s tariffs took effect, which he justified as part of his efforts to curb “illegal immigration” and stop “poisonous fentanyl and other drugs” from entering the U.S.

As the largest foreign supplier of steel and aluminum to the U.S., Canada’s countermeasures represent a significant escalation. This follows an earlier threat from Canada to increase electricity costs for U.S. imports—a move that prompted Trump to instruct his Secretary of Commerce to raise steel and aluminum tariffs from 25 percent to 50 percent. Though Trump later retracted that directive, Canada is pressing forward with its own tariffs, which will take effect at 12:01 a.m. on March 13.

Donald Trump threatened to double Canada's tariffs (Anna Moneymaker/Getty Images)

The new tariffs will impact CAD $12.6 billion in steel products, CAD $3 billion in aluminum, and CAD $14.2 billion worth of other imported U.S. goods. Items affected include tools, computers, display monitors, water heaters, sports equipment, and cast-iron products.

Announcing the move, Finance Minister Dominic LeBlanc stated:
“I am announcing that the government of Canada, following a dollar-for-dollar approach, will be imposing, as of 12:01 a.m. tomorrow, March 13, 2025, 25 percent reciprocal tariffs on an additional $29.8 billion of imports from the United States.”

LeBlanc criticized the U.S. administration for disrupting a strong trade partnership and increasing costs for both Canadian and American consumers, saying:
“We will not stand idly by while our iconic steel and aluminum industries are being unfairly targeted.”

These tariffs add to previous measures imposed earlier this month on billions of dollars’ worth of U.S. imports.

Canada's Foreign Affairs Minister Mélanie Joly has said Canada is willing to fight (X/@melaniejoly)

Foreign Affairs Minister Mélanie Joly acknowledged the ongoing trade conflict, calling it a “day-to-day fight,” and labeled the latest tariffs as the second round of “unjustified” U.S. actions against Canada.

Joly, who is meeting with G7 foreign ministers in Quebec, plans to raise the issue with U.S. Secretary of State Marco Rubio. Speaking to reporters, she emphasized the broader implications of the dispute:
“This is about more than just our economy. It is about the future of our country. Canadian sovereignty and identity are non-negotiable.

“Canadians have had enough. We are a strong country, and we will defend our sovereignty, our jobs, and our way of life—every single day, one day at a time.”