Canada on Wednesday, March 12, said it would impose 25% tariffs on US goods worth more than $20 billion.
The mentioned Ottawa decision is an action in response to levies on imported steel and aluminum that were enacted by the administration of the President of the United States Donald Trump. The specified measures of Washington’s trade policy entered into force overnight.
The tariffs announced on Wednesday by Canada apply to steel and aluminum, and other goods from the United States, including computers, sports equipment, and cast iron products. The corresponding statement was made by Canadian Finance Minister Dominic LeBlanc during a press conference. It was also stated that the trade measures announced on Wednesday by Ottawa against Washington will take effect on Thursday, March 13.
It is worth noting that the new Canadian tariffs are in addition to the levies already imposed by this country, which were slapped on March 4. These measures of Ottawa’s trade policy affected US goods worth $30 billion. As part of the imposition of the mentioned tariffs, Canada acted in the context of retaliatory decisions regarding the Donald Trump administration’s broad levies on Canadian imports.
The first countermeasures from Ottawa are still in force. It is worth noting that on March 6, the President of the United States issued temporary exemptions for some of the tariffs amid a severe stock market sell-off.
The incipient trade war is a process with bilateral negative consequences. In this case, there will be a winning side and a losing side in the long run. At the same time, it is possible that negotiations will be held in the coming weeks or months on easing tariff measures that will prevent a subsequent escalation of the trade war. If the dynamic of the situation continues to move along the trajectory of deterioration, a kind of race for survival may begin. This does not necessarily mean the collapse of the economy, but it is guaranteed to provide for sensitive losses that Washington will find easier to deal with than Ottawa. In this case, the factor determining the prospects is what can be called a margin of safety. From the point of view of the mentioned indicator, the economic system of the United States is stronger than that of Canada. In the fourth quarter of 2024, the gross domestic product (GDP) of the US was recorded at the $29.71 trillion mark. The relevant data was published by the United States Bureau of Economic Analysis. Canada’s GDP in the last quarter of 2024 was about $2.11 trillion. The corresponding data was published by the International Monetary Fund. The difference in indicators in this case is more than obvious. Different sources of information do not distort the significant gap between Canada’s GDP and that of the United States.
It is worth noting that Donald Trump imposed 25% tariffs on all steel and aluminum imports. This means that these trade policy measures of the United States are not some kind of exclusive action against Canada.
The European Union also announced retaliatory tariffs against the US amid the Donald Trump administration’s levies on steel and aluminum imports. In this case, the countermeasures will affect US goods worth more than $28 billion.
Melanie Joly, Canada’s foreign affairs minister, said during Wednesday’s press conference that the confrontation between Ottawa and Washington is not just about the economy. As part of the mentioned statement, it was noted that it is about the future of Canada. Melanie Joly stated that Canadians have had enough. The foreign affairs minister also underlined that Canada is a strong country.
A Canadian delegation led by Ontario Premier Doug Ford is scheduled to visit Washington on Thursday for trade talks with United States Commerce Secretary Howard Lutnick.
On Wednesday, Doug Ford met with prime minister-designate Mark Carney ahead of the US meetings.
According to some media opinions, Donald Trump is a devoted fan of tariffs. He sees these trade policy measures as key tools for negotiating with other countries, generating revenue, and protecting and boosting homegrown industries.
