The United States has sharply increased tariffs on imported steel and aluminum, doubling them from 25% to 50% as of June 4, 2025. This move, announced by President Trump, is intended to protect American steel and aluminum industries by addressing what the administration describes as unfair trade practices and national security concerns. The tariffs apply broadly to imports from many countries, including Canada, which is the largest supplier of steel to the U.S. market.
The Trump administration justified the tariff hike as a necessary measure to combat the flooding of the U.S. market with low-cost, surplus steel and aluminum, which it says undermines domestic producers. The previous 25% tariff, in place since March, was deemed insufficient to protect American steel mills and aluminum smelters. The increase to 50% aims to more effectively shield U.S. producers from foreign competition, particularly from countries like China, which have been accused of oversupplying the global market.
The tariffs cover a wide range of products that rely on steel and aluminum, affecting industries such as automobile manufacturing, aircraft production, construction, and oil drilling. The higher costs for raw materials are expected to ripple through these sectors, potentially raising prices for consumers.
Interestingly, the United Kingdom has been exempted from the new 50% tariffs, maintaining the 25% rate, as trade negotiations between the U.S. and the UK continue. This exemption highlights the strategic nature of the tariffs as part of broader trade discussions.
Canada’s government has expressed strong opposition to the tariff increase, labeling it “unlawful and unjustified.” Prime Minister Mark Carney emphasized that Canada will take “some time, not much, some time” to formulate a response while engaged in intensive trade discussions with the United States. Carney acknowledged that the U.S. action is global in scope and not exclusively targeted at Canada, but he warned that the tariffs will harm American industries and workers as well.
Currently, Canada has retaliatory tariffs imposed on $90 billion worth of U.S. goods. However, the federal government has not yet committed to matching the U.S. tariff increase dollar for dollar. Carney’s approach appears cautious, focusing on negotiations to reach a new economic and security arrangement with the U.S.
Ontario Premier Doug Ford has been vocal in urging the federal government to escalate its response by doubling Canada’s retaliatory tariffs to match the 50% U.S. duties. Ford argues that Canada cannot afford to remain passive in the face of what he describes as aggressive U.S. trade actions that threaten Canadian steel jobs and industries. He has directly requested Prime Minister Carney and Canada-U.S. Trade Minister Dominic LeBlanc to impose an additional 25% tariff on U.S. steel.
Ford’s stance reflects the concerns of Canadian steel companies and union workers, who are actively lobbying Parliament members to push back against the U.S. tariffs. The doubling of tariffs by the U.S. has created uncertainty and increased costs within the steel sector, intensifying calls for a firm Canadian response.
The tariff increase is expected to have significant economic consequences on both sides of the border. For the U.S., while the tariffs aim to protect domestic producers, they also risk increasing costs for industries reliant on steel and aluminum imports. This could lead to higher prices for consumers on a range of goods, from automobiles to household items.
For Canada, the tariffs threaten a vital export market and could disrupt supply chains. The ongoing discussions between Ottawa and Washington will be crucial in determining whether a negotiated resolution can be reached or if retaliatory measures will escalate the trade tensions further.
The U.S. decision to double tariffs on steel and aluminum imports marks a significant escalation in trade policy, with Canada carefully weighing its options amid pressure from provincial leaders and industry stakeholders. The coming weeks will be critical as negotiations continue, and the economic impact unfolds on both sides of the border.
