U.S. President Donald Trump’s latest trade salvo landed with a clang at 12:01 a.m. ET Wednesday, as 25% tariffs on steel and aluminum imports from Canada—and all other nations—took effect. The executive order reverses exemptions from Trump’s 2018 tariffs, pulling Canada back into the crosshairs of his global trade overhaul.
The move came mere hours after the White House backed off a Tuesday threat to double tariffs on Canadian metals, a retreat prompted by Ontario Premier Doug Ford’s decision to scrap a 25% surcharge on electricity exports to three U.S. states. Ford and U.S. Commerce Secretary Howard Lutnick sealed the deal in a Tuesday phone call, easing tensions—for now. Ford heads to Washington Thursday to huddle with Trump’s team on the Canada-U.S.-Mexico Agreement (CUSMA).
Trump tipped his hat to Ford, dubbing him a “strong man” and “gentleman” for the swift concession. Meanwhile, Canada’s prime minister-designate Mark Carney fired off a social media post Tuesday: “We can’t dictate Trump’s moves, but we can shape our response—bolstering our workers and forging a tougher, future-ready economy.”
Markets have been reeling since Trump’s tariff blitz kicked off. Last Thursday, he signed an order delaying broader CUSMA-compliant goods tariffs until April, but the White House warns these new steel and aluminum duties will pile onto whatever hits next.
Canada, the U.S.’s top supplier of both metals, fuels about a quarter of America’s steel demand. In Selkirk, Manitoba—home to the Gerdau Ameristeel mill and its 10,500 residents—Mayor Larry Johannson voiced unease. “We ship so much through the U.S. Being this reliant on them, with tariffs dangling over us, forces us to rethink how we operate,” he said. The mill, a maker of specialty steel and rebar for global projects like Dubai skyscrapers, weathered Trump’s first tariff wave without layoffs. Johannson’s betting on resilience again.
Economists, however, paint a grim picture. The 2018 tariffs jacked up costs for U.S. firms, tanked exports, and axed 75,000 American manufacturing jobs, per the Tax Foundation. Canada felt the sting too, with layoffs north of the border.
“Steel and aluminum symbolize strength, but these tariffs weaken us both,” fumed Candace Laing, CEO of the Canadian Chamber of Commerce. “Trump’s handing China the keys to North America’s metal dominance. We need a real trade deal, not a tax-on-tax mess.”