For most of Tuesday, President Donald Trump appeared to increase the trade war pressure on Canada, particularly the country’s steel and aluminum exports to the U.S.
By the end of the day, the moves signaled sound and fury, signifying nothing.
This morning, the U.S. imposed a 25% tariff on all steel and aluminum imports from countries worldwide. Canada avoided a 50% tariff, which the president declared early Tuesday, when Ontario Premier Doug Ford rescinded a 25% tariff on electricity exported to the U.S.
Canada exports more steel to the U.S. than any other country, importing 6.6 million net tons in 2024, over 30% more than Brazil (4.5 million net tons) and nearly double Mexico (3.3 million net tons).
Canada exports more aluminum to the U.S. (3.5 million tons) than the rest of the world combined. The next 14 countries that export aluminum to the U.S. total less than 2 million tons annually.
The tariffs were met with pushback abroad.
Australian Prime Minister Anthony Albanese said the decision was unjustified.
“As with the other products and resources that Australia has,” Albanese said, “we will continue to diversify markets for our products which are in demand globally.”
The European Union responded by declaring tariffs on 26 billion euros ($28.3 billion) worth of U.S. products, starting in April. Of the total, 8 billion euros of tariffs will be derived from tariffs the EU issued in 2018 and 2020 that were suspended when Trump left office after his first term.
The European Commission in a statement said the EU was ready to work with the U.S. to find a solution, saying its retaliatory tariffs can be reversed anytime a solution is found.
European Commission President Ursula von der Leyen said, “As of this morning, the United States is applying a 25% tariff on imports of steel and aluminum. We deeply regret this measure. Tariffs are taxes. They are bad for business, and even worse for consumers. These tariffs are disrupting supply chains. They bring uncertainty for the economy. Jobs are at stake. Prices will go up. In Europe and in the United States.”
