Canada Imposes $2.7 Billion Retaliatory Tariffs on US Steel, Aluminium, Consumer Goods

Canada is set to implement new import duties on American goods, a direct response to the Biden administration's reintroduction of tariffs on Canadian steel and aluminium. Deputy Prime Minister Chrystia Freeland confirmed the 'dollar-for-dollar' retaliatory measures, affecting approximately $2.7 billion worth of US products.

The newly imposed tariffs target a broad range of items, from specific steel and aluminium products to everyday consumer goods such as fresh tuna, coffee beans, furniture, and makeup. Some of these levies will be as high as 50%, reflecting Ottawa's firm stance against the US trade actions.

This move follows the US decision to reinstate 10% tariffs on certain Canadian aluminium imports, with American officials citing a "surge" in shipments that they claim threatened US domestic production. Canada has consistently rejected this rationale, maintaining that its aluminium exports do not disrupt the American market. Prime Minister Justin Trudeau has previously characterised the US tariffs as "unacceptable" and "absurd."

The current dispute echoes earlier trade confrontations, notably during the Trump administration, when similar tariffs were imposed and met with Canadian counter-measures. These recurring trade hostilities underscore the persistent economic friction between the two North American allies, particularly concerning resource extraction and manufacturing interests.