Canada hits back at U.S. with $29.8 billion in retaliatory tariffs

Canada has announced 25 per cent reciprocal tariffs on nearly $30-billion worth of imports from the U.S. beginning at 12:01 a.m. Thursday.

Impacted goods will include steel, aluminum, tools, sports goods and cast iron.

The retaliatory measures are in response to Donald Trump’s 25 per cent steel and aluminum tariffs, which went into effect Wednesday morning.

Earlier in March, Prime Minister Justin Trudeau stated that Trump’s tariffs are an attempt to annex Canada. President Trump has since made multiple calls for Canada to become the “51st state”

Foreign Affairs Minister Melanie Joly spoke about the annexation threats at a press conference on Wednesday, saying Canada will “not back down, and we will not give in to this coercion.”

“We have done nothing to justify Trump’s attacks on our country,” Joly said.

“We will do everything in response.”

Alongside Joly, Industry Minister Francois-Phillipe Champagne said the uncertainty between the U.S. and Canada has become a national security issue.

He is part of a group of ministers heading to Washington on Thursday.

READ MORE: Trump’s steel and aluminum tariffs kick in

At a tour of Hamilton steel plant ArcelorMittal on Wednesday, prime minister designate Mark Carney offered some reassuring remarks to workers.

“We are going to make sure that all the proceeds from our tariffs go back to support workers in the affected industries – in the steel industry and in the aluminum industry,” Carney said. 

“I’m ready to sit down with President Trump at the appropriate time, under a position where there is respect for Canadian sovereignty.”

On Tuesday, the U.S. president walked back on his threat to double steel and aluminum tariffs after Ontario Premier Doug Ford agreed to pause the surcharge on electricity exports to 1.5 million homes in New York, Michigan and Minnesota.

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

Premier Ford met with Mark Carney on Wednesday morning to discuss the trade war threat, and plans to meet with U.S. Commerce Secretary Howard Lutnick on Thursday.

READ MORE: Ontario to suspend electricity surcharge, Ford to meet with Lutnick

“We agreed on the need to stand firm and strong in the face of President Trump’s threats, including additional retaliatory tariffs in response to U.S. tariffs on steel and aluminum, which will raise costs for American businesses and families,” Ford said in a statement after his meeting with Carney .

“Canada won’t relent until the threat of tariffs is gone for good. I look forward to sitting down with U.S. Secretary of Commerce Howard Lutnick and members of the Trump administration’s economic team tomorrow.”

Meanwhile, Lutnick told Fox Business News that nothing would stop Trump’s tariffs on steel and aluminum until U.S. domestic production is strengthened.

He added that his meeting with Ford on Thursday is to “lower the temperature” between the U.S. and Canada.

Trump said in a statement at the Oval Office on Wednesday that he plans to respond to Canada’s retaliatory measures, but has not revealed what that will look like yet.

READ MORE: Bank of Canada announces interest rate cut to 2.75 per cent amid trade war concerns