Canada To Impose $20 Billion In Tariffs Against The U.S.

Canada is fighting back against tariffs that President Donald Trump imposed on steel and aluminum products, announcing its own tariffs against the U.S.

Canada’s Finance Minister, Dominic LeBlanc, said that Canada would match the U.S. tariffs dollar for dollar and that it won’t tolerate what it sees as unfair targeting of its industries.

Canada is the largest foreign supplier of steel and aluminum to the U.S., and their trade relationship is one of the most integrated in the world, rooted in decades of mutual cooperation. Both countries share a long border, and their economic ties are bolstered by extensive trade agreements, most notably the U.S.-Canada Free Trade Agreement (FTA) in 1989, which was later expanded into the North American Free Trade Agreement (NAFTA) in 1994, and replaced by the U.S.-Mexico-Canada Agreement (USMCA) in 2020.

Historically, the U.S. and Canada have experienced few major conflicts over trade, but there have been tensions in the past, particularly regarding tariffs on softwood lumber and dairy products, as well as steel and aluminum.

Despite these occasional challenges, both nations have generally prioritized collaboration over confrontation. While they have never been at full-scale trade war, they’ve had their share of trade spats, often resolved through negotiation or internal arbitration. However, now a global trade war looms, with the European Union also announcing its own tariffs against the U.S. totaling $28 million ranging from textiles to agricultural goods. China has also imposed retaliatory tariffs on both the U.S. and Canada.