Trump’s tariffs on Canadian steel, aluminum now in place

WASHINGTON — The latest move in U.S. President Donald Trump’s plan to realign global trade came into force Wednesday as all countries, including Canada, were hit with 25 per cent tariffs on steel and aluminum imports into the United States.

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The president’s executive order went into place at 12:01 a.m. ET. It removes the exceptions and exemptions from Trump’s 2018 tariffs on steel and aluminum, which eventually excluded Canada and other countries from the duties.

The latest levies came into force hours after the White House confirmed Trump would not follow through on Tuesday threats to double tariffs on Canadian steel and aluminum after Ontario agreed to pause a surcharge on electricity exports to the U.S.

U.S. Commerce Secretary Howard Lutnick and Ontario Premier Doug Ford spoke by phone Tuesday. Ford removed a 25 per cent surcharge on electricity exports to three U.S. states in return for the lowered duties on steel and aluminum.

Ford is set to meet with members of Trump’s team in Washington on Thursday to discuss the Canada-U.S.-Mexico Agreement, also called CUSMA.

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Trump offered praise for Ford, calling him a “strong man” and a “gentleman.”

Prime minister-designate Mark Carney said in a post on social media Tuesday that while Canada “can’t control President Trump, we can control how we respond — by supporting our workers and building a stronger, more resilient economy for our future.”

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Markets have been in a tailspin since Trump began to put in place his massive tariff agenda.

Last Thursday, Trump signed an executive order delaying until April tariffs on goods that meet the rules-of-origin requirements under CUSMA.

The White House has said steel and aluminum tariffs will stack on top of any other duties that Trump introduces in April.

About a quarter of all steel used in the United States is imported and Canada is the largest supplier. Canada is also the United States’ largest source of aluminum.

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In Selkirk, where the Gerdau Ameristeel mill is a major employer for the Manitoba city with a population around 10,500, Mayor Larry Johannson said a lot of product goes through the United States.

“To be that dependent on a country, and then to have them be able to hold this over our heads, I think we have to look at the way we’re doing business and we may have to do it a little differently,” Johannson said.

The Manitoba mill provides specialty steel and rebar for products, such as elevators, and it is used in buildings as far away as Dubai. Johannson said he’s confident the mill can survive, adding there were no layoffs when tariffs were imposed during the first Trump administration.

Economists have said Trump’s 2018 tariffs on steel and aluminum were costly for American companies and consumers.

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A report by the Washington-based Tax Foundation said companies were forced to pay higher prices, U.S. exports dropped and the duties resulted in the loss of about 75,000 manufacturing jobs.

There were also layoffs in Canada.

“Steel and aluminum are about strength; these tariffs do nothing but weaken us both. President Trump may as well hand over North America’s steel and aluminum leadership to China,” Canadian Chamber of Commerce President and CEO Candace Laing said in a statement Tuesday.

“Instead of adding taxes on taxes and more uncertainty to the mix, we must move away from tariffs and toward a lasting agreement on trade that is respected on all sides.”

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