Canada’s Response to Trump’s New Tariffs: What You Need to Know

After Donald Trump put new taxes on Canadian steel and aluminum, Canada said it will respond with its own taxes on about C$30 billion (around $20.8 billion) of products from the U.S. Trump announced this on his Truth Social account, saying he would raise the tariff on steel and aluminum from Canada to 50%. This change took place today. Since becoming president again, Trump has set high taxes on countries like Canada, Mexico, and China, while promising new taxes from April 2.

These new taxes will hurt Canada because it provides a large part of U.S. aluminum (50%) and steel (20%). U.S. Commerce Secretary Howard Lutnick stated that the higher tariffs would stay in place until American companies can make more steel and aluminum. He believes this move is necessary to ensure fair trade and that negotiations with Canada will be ongoing.

Trump also warned Canada that if it does not lower its own tariffs, he will increase taxes on cars coming from Canada, which could put many Canadian car factories out of business. Trump mentioned he might also stop the U.S. government’s defense support for Canada unless Canada becomes the 51st state of the U.S.