Trump’s 50% Tariffs: A Devastating Blow to Canadian Industry

Trump Doubles Down: Steel and Aluminum Tariffs

U.S. President Donald Trump has announced he will double tariffs on Canadian steel and aluminum imports to 50 per cent, starting next Wednesday. Speaking to a crowd of steelworkers in Pittsburgh on Friday, Trump said the tariffs will “further secure the steel industry in the United States.”

“🎤 Nobody is going to get around that,” he declared at U.S. Steel’s Mon Valley Works–Irvin Plant.

Trump later took to social media to confirm the new 50 per cent duties would also apply to aluminum imports. “Our steel and aluminum industries are coming back like never before,” he posted. “This will be yet another BIG jolt of great news for our wonderful steel and aluminum workers. 🇺🇸 MAKE AMERICA GREAT AGAIN!”

Impact on Canada

The announcement is a major blow to Canada, which supplies nearly a quarter of all steel used in the U.S. Canadian Labour Congress President Bea Bruske called the move “yet another direct attack on Canadian workers and a reckless decision that will send shockwaves across the Canadian economy.”

Bruske warned that these tariffs would effectively shut Canadian producers out of the U.S. market, threatening thousands of good-paying, unionized jobs. She urged Ottawa to act immediately by implementing emergency reforms to employment insurance and wage subsidies to protect workers.

“We need a government that is prepared to stand up for Canadian industries, invest in good union jobs, and protect our economic sovereignty in the face of growing international uncertainty,” Bruske said.

Candace Laing, president and CEO of the Canadian Chamber of Commerce, echoed these concerns. She warned that dismantling the “efficient, competitive and reliable” cross-border supply chains for steel and aluminum will harm both Canadian and American businesses.

“Doubling the steel and aluminum tariffs to 50 (per cent) is antithetical to North American economic security,” Laing said. “The fact remains that Canada is a reliable and secure trading partner that supplies materials that sustain American jobs.”

📉 The High Cost of Tariffs

Economists and trade experts have cautioned that these tariffs will have consequences far beyond the border. During Trump’s first term, he imposed similar tariffs — 25 per cent on steel and 10 per cent on aluminum — under Section 232 of the Trade Expansion Act of 1962, citing national security concerns.

The Washington-based Tax Foundation reported that the 2018 tariffs forced U.S. companies to pay higher prices, costing the economy an estimated 75,000 manufacturing jobs. Meanwhile, the Peterson Institute for International Economics found that each job saved in the U.S. steel sector cost consumers about $650,000.

In Canada, producers were also hit hard, with job losses and temporary production slowdowns as American buyers turned away from more expensive Canadian steel and aluminum. Many fear a repeat of the 2018 disruption.

What’s Behind Trump’s Move? 🤔

Trump announced the new tariffs during a rally that also celebrated a deal between Japan-based Nippon Steel and U.S. Steel. Trump claimed the agreement would ensure U.S. Steel remains an American company, but details of the partnership remain murky. Nippon Steel has said it supports the proposed partnership, but a final deal has not been confirmed.

The tariff hike also comes after Trump faced a major legal setback. Earlier this week, the U.S. Court of International Trade blocked his use of emergency powers under the International Emergency Economic Powers Act (IEEPA) to impose sweeping tariffs on most nations. A federal appeals court has since granted a temporary stay, allowing those tariffs to stay in place for now.

🚨 A Call for Action

For Canadian workers and businesses, Trump’s latest move revives fears of a prolonged trade fight that could once again batter the industry. The Canadian Chamber of Commerce, unions, and steel and aluminum producers are urging Ottawa to take decisive action to defend the sector and protect jobs.

As the Canadian government weighs its response, workers and businesses are bracing for yet another round of economic uncertainty. Whether Ottawa can shield Canadian steel and aluminum from the worst of these new tariffs remains to be seen.