Canada has sharply increased duties on American steel imports in response to President Donald Trump’s abrupt end to trade talks.
The Canadian government imposed an import quota late Friday, and any American steel shipments exceeding that limit will now face a 50% surcharge.
Finance Minister François-Philippe Champagne said the measure is meant to protect Canada’s steel industry from what he called “unjust US tariffs,” according to NBC News.
The move follows Trump’s declaration on Truth Social that Canada is a “very difficult country to trade with.” His post came just hours before Canada’s announcement.
Trump’s decision to cut off trade negotiations centered on Canada’s digital services tax, which is set to take effect Monday. The tax targets large tech firms profiting from Canadian users.
“Based on this egregious tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,” Trump posted. He accused Canada of launching “a direct and blatant attack on our Country.”
Canada’s new tax will apply to digital companies making over $15 million in revenue from Canadian internet users, per the Daily Mail.
The tax is set at 3% and is retroactive to 2022.
The levy is expected to impact major American companies such as Amazon, Google, Meta, Uber, and Airbnb. Industry lobbyists estimate U.S. firms could owe up to $3 billion to Canada.
In its response, Canada has not ruled out additional retaliatory steps. Officials said they are “prepared to take additional steps as needed.”
The impact of the Canadian steel duty hike on the struggling U.S. steel industry remains unclear. U.S. Steel Corporation recently merged with Japan’s Nippon Steel after years of declining performance.
Canada remains the United States’ second-largest trading partner despite rising trade tensions. Trump’s administration maintains a 25% tariff on Canadian imports not covered by the USMCA.
Canadian energy exports are exempt from the 25% tariff, though they still face a 10% duty. Most Canadian goods entering the U.S. since April have faced similar tariffs.
Canada’s own industries have also suffered from Trump’s earlier tariffs. Since March, Canada’s steel industry has laid off roughly 1,000 workers due to American import taxes.
Canadian steel exports have been hit hard by Trump’s 50% tariffs on steel and aluminum, which have added pressure to an already strained sector.
The tariff escalation unfolds as Trump’s July 9 global trade renegotiation deadline approaches. Countries have until then to avoid what Trump has termed “reciprocal tariffs.”
Trump announced the tariff regime on April 2, calling the day “Liberation Day.” Over 60 countries were affected, facing import duties up to 50%.
The announcement triggered financial market turmoil, including a drop in bond values. Trump responded by enacting a 90-day pause on tariff enforcement starting April 9.
Treasury Secretary Scott Bessent stated Friday that the pause might be extended to Labor Day. During this period, the U.S. may negotiate reduced tariffs with individual countries.
Trump echoed Bessent’s statement, indicating the July 9 deadline could be adjusted based on ongoing trade developments.
The post Canada Responds to Trump With Fierce Move Amid Tariff War appeared first on Resist the Mainstream.
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Author: Anthony Gonzalez
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