Canada is expected to impose $20.7 billion in retaliatory tariffs after President Trump decided to enforce a 25 percent tariff on steel and aluminum, which went into effect on Wednesday.
The Associated Press said a senior Canadian government official confirmed the move on Wednesday, speaking on the condition of anonymity because they were not authorized to speak ahead of an announcement.
Canada supplies more steel and aluminum to the U.S. than any other nation.
The new tariff follows a tariff spat between the U.S. and Ontario already this week.
The province placed a surcharge on electricity supplied to New York, Michigan and Minnesota. In response, Trump vowed to double the 25 percent metals tariff. Ontario Premier Doug Ford then said he would hold off on the electricity surcharge ahead of a sit-down on Thursday with Commerce Secretary Howard Lutnick.
The European Union (EU) introduced a similar punitive two-step measure against the United States earlier in the day, seeking to gain leverage in Trump’s international economic whirlwind that analysts predict will raise consumer prices across borders.
The EU, composed of 27 partner nations, chose to introduce a countermeasure package worth $28 billion in response to the president’s levies. Their countermeasures are expected to go into full effect by April 13.
“These tariffs are disrupting supply chains. They bring uncertainty for the economy. Jobs are at stake. Prices will go up. In Europe and in the United States. The European Union must act to protect consumers and business,” Ursula von der Leyen, president of the European Commission, said in a statement.
“The countermeasures we take today are strong but proportionate. As the US are applying tariffs worth 28 billion dollars, we are responding with countermeasures worth €26 billion. This matches the economic scope of the US tariffs.”
Trump has identified potential price hikes as a “period of transition” necessary for the country’s growth and said inflationary trends will be worth it in the long run.
The Hill has reached out to the White House and Canada’s Minister of Export Promotion, International Trade and Economic Development for comment.
