Retaliation Set to Begin
Canada is prepared to impose counter-tariffs of 15%, 25%, or 50% on a variety of US products starting at 12:01 a.m. on Tuesday, unless a last-minute trade agreement is reached. The measures include a 50% tariff on US steel and aluminum, a direct response to the breakdown of trade talks between Washington and Ottawa last month.[S1]
After talks broke down, Washington levied 50% duties on various Canadian products under Section 338 of the Tariff Act of 1930. Prime Minister Mark Carney vowed to respond in kind, and within days Ottawa released a roster of American goods for countermeasures, intending to mirror both Section 338 and Section 232 tariffs on a one-to-one basis.[S1]
Steel and Aluminum at the Core
Additionally, the U.S. has applied Section 232 tariffs of 50% on steel and aluminum imports from nearly all nations, Canada included. This dispute with a key ally is significant because North American production networks are deeply integrated, so any disruption can have cross-border effects.[S1]
Prospects for a deal appeared bleak on Monday afternoon. President Donald Trump wrote on Truth Social, calling the situation "Completely unjust and unfair!" and stating that if Canada wants the US market, it must build there and stop treating America like a "piggybank."[S1]
Trade Numbers
Canada and Mexico are the top markets for American steel exports. In 2025, Canada ranked second after Mexico, receiving 2.55 million metric tons of U.S. steel, per Commerce Department data. That total comprised notable volumes of galvanized sheet, plate, hot-rolled coil, and cold-rolled coil.[S1]
As of July this year, U.S. steel shipments to Canada reached 1.31 million metric tons, including 273,033 metric tons of galvanized sheet, 98,000 metric tons of plate, 97,676 metric tons of hot-rolled coil, and 86,380 metric tons of cold-rolled coil.[S1]
