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Tariffs

Canada Imposes New Counter-Tariffs on U.S. Steel and Aluminum

Strategic Insights

— 2 min read

Canada will impose new counter-tariffs on U.S. steel and aluminum if a deal to resolve the trade dispute with the Trump administration cannot be reached within 30 days, Prime Minister Mark Carney announced Friday. The new tariffs will be introduced at the end of the 30-day period, on July 21, as part of a suite of measures to protect Canadian workers and businesses from the U.S. tariffs. Carney also announced new tariffs of 100 per cent on imports of steel from countries that don't have a free-trade agreement with Canada, aimed at stabilizing the domestic market and preventing harmful trade diversion.

Key Takeaways:

  • The Canadian government will impose new counter-tariffs on U.S. steel and aluminum if a deal to resolve the trade dispute with the Trump administration cannot be reached within 30 days.
  • The new tariffs will be introduced at the end of the 30-day period, on July 21.
  • The new counter-tariffs will be adjusted to levels consistent with the progress made in the broader trading arrangements with the United States.
  • The Canadian Steel Producers Association and the United Steelworkers Union expressed disappointment with the government's plan, stating it does not meet the industry's needs.
  • Prime Minister Mark Carney plans to update premiers at a first ministers' meeting Friday following his talks with Trump at the G7 summit.
  • Carney will also tighten federal procurement rules to bring in a modified Buy Canadian policy that would prioritize Canadian producers.
  • The government has offered $10 billion in loans to provide liquidity to tariff-affected industries.
  • The digital services tax will apply even as Carney's team is in pitched negotiations to reach a trade deal.

Statistics:

  • 30 days: the timeframe for the Canadian government to reach a deal with the Trump administration to resolve the trade dispute.
  • £8 billion: the estimated value of counter-tariff exemptions - called remissions - for Canadian importers of U.S. steel and aluminum.
  • 50 per cent: the tariff imposed by the U.S. on imports of steel and aluminum.
  • 10 per cent: the tariff imposed by Canada on imports of U.S. steel and aluminum.
  • 100 per cent: the tariff imposed on imports of steel from countries that don't have a free-trade agreement with Canada.

Sources:

  • Reuters. (2025, June 16). Canada to impose new tariffs on US if no trade deal reached.
  • Global News. (2025, June 18). Prime Minister Mark Carney announces new counter-tariffs on US steel and aluminum.
  • The Star. (2025, June 17). Canada to impose new tariffs on US steel and aluminum if no deal reached within 30 days.

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