The U.S. is set to impose 25% tariffs on Canadian steel and aluminum imports starting Wednesday, as President Donald Trump follows through on his aggressive trade agenda targeting Canada.
U.S. Commerce Secretary Howard Lutnick confirmed the move on Sunday, adding that tariffs on Canadian dairy and lumber—which Trump has also threatened—will not take effect until April.
Last week, Trump launched and then partially paused a trade war with Canada and Mexico, sending shockwaves through financial markets. While he signed an executive order delaying tariffs on goods that meet Canada-United States-Mexico Agreement (CUSMA) rules-of-origin requirements, the broader tariff plan is moving forward.
Lutnick stated that a 25% tariff will apply across all Canadian imports, while a lower 10% tariff will be levied on Canadian energy and potash. These measures will be reassessed in April, potentially escalating trade tensions further.
With the first round of tariffs set to hit this week and more on the horizon, Canada faces increasing pressure in its economic standoff with the U.S.