Prime Minister Justin Trudeau says Ottawa will work to convince U.S. President Donald Trump that his steel and aluminum tariffs will hurt both countries. (Feb. 11, 2025)
The Canadian Press
Prime Minister Justin Trudeau said Canada will retaliate if the United States proceeds with what he called “entirely unjustified” tariffs on Canadian steel and aluminum.
U.S. President Donald Trump said Monday that new 25-per-cent levies will be applied to all imports of steel and aluminum starting March 12 – measures that will ignite a costly and damaging trade war as other countries including Canada counter with tariffs of their own on U.S. goods.
Mr. Trump said Canada could avoid these levies if it agreed to be annexed by the United States. “That’s why Canada should be our 51st state,” the president said Monday.
Mr. Trudeau, speaking to reporters during a visit to Paris, said it makes no sense to hike costs for Canadian steel and aluminum because they are key ingredients in vital American industries.
ArcelorMittal Dofasco steel production facility in Hamilton, Ont., on Feb. 10. Prime Minister Justin Trudeau says Canada will retaliate if the U.S. goes through with 25-per-cent tariffs on Canadian steel and aluminum in March.Nick Iwanyshyn/The Canadian Press
“We are the U.S.’s closest ally. Our economies are integrated. Canadian steel and aluminum is used in a number of key American industries, whether it’s defense, ship building, manufacturing, energy or automotive,” he said.
Canada has not yet unveiled counter-tariffs. Mr. Trudeau said Ottawa will try to alert American officials to the inflationary consequences of Mr. Trump’s tariffs.
“We will be working with the American administration over the coming weeks to highlight the negative impacts on Americans and Canadians of these unacceptable tariffs.” If that doesn’t work, the United States can expect a strong retaliatory response, he said.
“If it comes to that, our response, of course, will be firm and clear. We will stand up for Canadian workers. We will stand up for Canadian industries.”
Canada is the top supplier of both steel and aluminum to the United States, and Canadian producers rely heavily on the U.S. market. Around half of the steel produced in Canada, and more than 90 per cent of the aluminum, are currently sent south across the border, with combined exports worth around $35-billion last year.
The tariff announcement is the latest sign that Mr. Trump intends to use levies on imports to force manufacturers to move their operations to the United States. He previously threatened steep levies on all Canadian and Mexican imports but announced a 30-day pause after the countries made some concessions on border security. He imposed an additional 10-per-cent tariff on Chinese imports, continuing the trade war he started in his first term.
Mr. Trudeau called for Canadian unity on opposition to the American tariffs.
“This is a moment of pride. This is a moment of pulling together. This is a moment for Canada to be solid in our identity, in our sovereignty and in our presence, for our friends and neighbors.”
The U.S. tariffs will be imposed under Section 232 of the Trade Expansion Act of 1962, which gives the President the authority to restrict trade on the grounds of national security. Mr. Trump used these powers in 2018, when he put 25-per-cent tariffs on steel and 10-per-cent tariffs on aluminum from Canada and other countries.
Back then, Canada responded by slapping retaliatory tariffs on $16.6-billion of U.S. imports.
Mr. Trudeau said Canadian steel and aluminum helps support jobs in the United States. “We should be doing more together, not fighting with each other, but Canadians will stand up strongly and firmly if we need to.”
Bloc Québécois Leader Yves-François Blanchet said he believes President Trump will reconsider imposing tariffs on aluminum when he realizes Quebec supplies 60 per cent of the material to the United States.
“When he says we are doing aluminum ourselves, hey man, it ain’t true. So they will need it. It is one month before that happens and it might not happen. It would be terrible for the American economy,” he said. “So I am sure there will be somebody in his plane between a basketball game or a baseball game to tell him don’t do that because it is bad for us. I am sure at the end of the day, the voice of reason will prevail.”
Mr. Blanchet also objected to any plan to shut off Quebec electricity to the U.S., saying most of the power goes to the northeastern U.S. states
“They are friendly and Democrats. They will remain our true client for some time. We have to refrain from threatening them with our electricity because they will stop trusting us,” he said.
With a report from Robert Fife.