The federal government will impose 25 per cent tariffs on U.S. goods worth $29.8 billion in retaliation for steel and aluminum tariffs the administration of U.S. President Donald Trump imposed Wednesday.
All countries, including Canada, have been hit with 25 per cent tariffs on steel and aluminum imports into the United States — part of Trump's attempts to realign global trade.
Canada's dollar-for-dollar tariffs will take effect at 12:01 ET Thursday.
Finance Minister Dominic LeBlanc told reporters Wednesday the tariffs are in addition to 25 per cent tariffs Canada imposed on $30 billion in imports from the United States earlier this month.
LeBlanc said the new Canadian levies target $12.6 billion in steel products and $3 billion in aluminum products. The counter-tariffs will also apply to other products, including computers, sports equipment and cast iron goods.
LeBlanc said the U.S. is "inserting disruption and disorder" into a successful trading partnership and is increasing the cost of everyday goods for both Canadians and Americans.
About a quarter of all steel used in the U.S. is imported and Canada is the United States' largest source of both steel and aluminum.
Prime minister-designate Mark Carney, speaking at a separate event with steelworkers in Hamilton, Ont., said it's a "difficult day" for the industry and the country.
He said proceeds from Canadian tariffs should go to support workers in affected industries and promised to "double down" on partnerships between the federal government and industry.
Carney said he was ready to "sit down with President Trump at the appropriate time, under a position where there's respect for Canadian sovereignty and we're working for a common approach."
On Tuesday, Trump said he had not yet spoken to Carney but is "always open" to leaders who want to talk.
The president has not responded directly to Canada's latest counter-tariffs. He has said that he will impose retaliatory tariffs on jurisdictions that impose fees on the U.S.
On Wednesday — one day after Ontario agreed to suspend a surcharge on electricity exports to several U.S. states after Trump threatened to double the metals tariffs — Trump cited what he called Ontario's "little threat."
"We had a problem with Ontario, and they dropped that when I let them know what we were going to be doing. They dropped it immediately," Trump said.
"So I'm glad, because you shouldn't be playing with electricity. It affects people's lives, actually their life, depending on the weather. So we can't let them do that."
Speaking at Queen's Park in Toronto on Wednesday, Ontario Premier Doug Ford said he sees the suspension of electricity tariffs not as a loss but as a negotiating tactic.
The EU will be imposing its own retaliatory tariffs in response to Trump's steel and aluminum charges, and the president said he will respond in kind.
The Trump administration has used tariffs in an attempt to push the auto sector to move production to the United States.
Innovation Minister François-Philippe Champagne said his government would fight for Canada's auto sector "every single day."
"These companies, most of them, have long-standing commitments to this country. We're going to make sure that they abide by the terms of every single agreement we have with them to make sure we protect the jobs," Champagne said.
"Make no mistake that we are already on their backs, saying that we're going to be watching like hawks."
The tariffs were "ill-conceived," said David Adams, president and CEO of the Global Automakers of Canada, the national industry association that represents the Canadian interests of 15 international automakers.
Tariffs will make vehicles built in the United States more expensive for Americans and less competitive in the Canadian market, he said.
"Constructive dialogue about trade issues will achieve better results on both sides of the border and should always precede imposing tariffs," Adams said in a statement.
LeBlanc said the government learned Tuesday that the U.S. will also impose tariffs on "steel and aluminum content in certain derivative products."
"The government is currently assessing this aspect, and may impose, of course, further tariffs in response to this measure as well," he said.
