Canada Hits Back with $29.8 Billion in Tariffs on U.S. Imports
OTTAWA – The Canadian government has announced sweeping retaliatory tariffs on U.S. imports, responding to a fresh wave of American duties imposed earlier today on Canadian steel and aluminum products. The countermeasures, effective as of 12:01 a.m. on March 13, 2025, include a 25 per cent tariff on steel and aluminum products totaling $15.6 billion, as well as additional levies on a range of U.S. goods worth $14.2 billion, bringing the total response to $29.8 billion.
The decision was jointly announced by Finance Minister Dominic LeBlanc, Foreign Affairs Minister Mélanie Joly, and Innovation, Science and Industry Minister François-Philippe Champagne. The Canadian government is following a dollar-for-dollar approach to counter what it deems “unjustified” tariffs imposed by the U.S. administration.
“These tariffs will remain in place unless and until the U.S. administration reverses its unjustified decision,” LeBlanc stated. “Canada will use every tool at its disposal to defend Canadian jobs and support our businesses and workers during these challenging times.”
The newly affected products subject to counter tariffs include tools, computers, servers, display monitors, sporting equipment, and cast-iron products. This latest escalation follows Canada’s earlier response to the U.S. International Emergency Economic Powers Act (IEEPA) tariffs, imposed on March 4, 2025, which saw Canada apply 25 per cent counter tariffs on $30 billion worth of U.S. imports.
Further measures could be implemented on April 2, 2025, pending the results of a public consultation period. Canada is also assessing potential counter tariffs in response to new U.S. restrictions on the steel and aluminum content in certain derivative products.
In an effort to mitigate the impact on Canadian businesses and workers, the federal government has introduced several relief measures, including a remission process for exceptional cases. Additionally, on March 7, 2025, the government launched financial support programs through Export Development Canada (EDC) and the Business Development Bank of Canada (BDC), offering loans to impacted businesses. Farm Credit Canada will also provide targeted support to the agriculture and food sector.
The government has further expanded access to the Employment Insurance (EI) Work-Sharing Program, which helps businesses maintain their workforce by providing EI benefits to employees working reduced hours due to economic downturns beyond their employer’s control.
While Ottawa continues to urge Washington to reconsider its stance, officials remain resolute in their commitment to protecting Canadian industries. The government has signaled that additional support measures will be introduced as needed and is working with provincial and territorial counterparts to ensure comprehensive economic safeguards are in place.
With Canada and the U.S. engaged in one of the world’s largest trading partnerships, this latest trade dispute could have significant economic repercussions on both sides of the border. As tensions rise, all eyes are now on how the U.S. administration will respond in the coming weeks.
SOURCE Office of the Minister of Finance and Intergovernmental Affairs
