Canada has announced retaliatory tariffs on US goods worth $29,8 billion in response to US President Donald Trump's decision to impose 25% tariffs on Canadian steel and aluminum. This was announced on March 12, 2025, by Canadian Finance Minister Dominic LeBlanc, who stressed that such measures were a necessary step to protect national interests. The new tariffs will affect a wide range of US products and will come into force in the coming days, becoming the latest round of a trade standoff between the two neighboring countries.

According to LeBlanc, Trump’s decision to impose tariffs on metals, made on the morning of March 11, was perceived by Ottawa as “unreasonable and unacceptable.” Canadian authorities intend to mirror Washington’s actions in order to minimize the damage to their economy, which is heavily dependent on exports to the United States. Daily trade turnover between the countries exceeds $3,6 billion, and any restrictions have a serious impact on both sides. LeBlanc noted that American consumers will also feel the impact of higher prices for goods, since the costs of imports will inevitably be passed on to them.

The move is part of Canada's broader strategy to respond to Trump's trade policies. Prime Minister Justin Trudeau had previously announced plans to impose tariffs on up to $155 billion in U.S. exports in two phases: the first, on $30 billion, has been in effect since February, and the second, on $125 billion, was to begin later. But after the escalation of metal tariffs, Ottawa accelerated the process, focusing on immediate measures. According to CBC News, the list includes items such as orange juice, peanut butter, whiskey, steel, and appliances, which is expected to hurt American manufacturers.

The conflict escalated after Trump linked the tariffs to the need to combat the influx of fentanyl across the Canadian border, although less than 1% of the drug comes from Canada, according to the US Customs Service, with Mexico remaining the main source. Trudeau called the accusations “far-fetched” and accused the US of trying to exert economic pressure. In response to Trump’s threat to double metal tariffs to 50% on March 11, Canada quickly agreed to new measures, and Ontario even considered raising prices for electricity exports to the US, but later backed down after negotiations with the US.

The trade war has already sent ripples through financial markets, with the Canadian dollar and Mexican peso falling and U.S. stocks tumbling on fears of rising inflation, Reuters reports. Economists predict the tariffs could cut Canada's GDP by 0,3% in the long term if the dispute is not resolved. Meanwhile, Trump has signaled his readiness to take further steps, including auto tariffs, if Canada does not lift its countermeasures, jeopardizing the future of the USMCA. As the two sides trade tough words, businesses and consumers are bracing for a new economic reality.