Canada announced $21 billion in new tariffs on Wednesday aimed at U.S. imports of computers and sports equipment. This marks the latest escalation in the bitter and costly trade war between Washington and Ottawa. The announcement came just hours after President Donald Trump's 25% tariffs on Canadian steel and aluminum took effect.
Canada remains the largest foreign supplier of steel and aluminum to the United States. On Wednesday, Canadian Finance Minister Dominic LeBlanc announced that the new tariffs would apply to a range of U.S. imports, including computers, sports gear, and cast iron products. The announcement is expected to be met with further hefty retaliatory tariffs by the United States.
Canada Announces Fresh Tariffs
"Today, I am announcing that the government of Canada, following a dollar-for-dollar approach, will be imposing, as of 12:01 a.m. tomorrow, March 13, 2025, 25 percent reciprocal tariffs on an additional C$29.8 billion ($20.7 billion) of imports from the United States," LeBlanc said.
He further explained, "This includes steel products worth C$12.6 billion and aluminum products worth C$3 billion as well as additional imported U.S. goods worth C$14.2 billion."
On Tuesday, Canada backed down to Trump after he warned that the country would face an unprecedented "financial price" for imposing an electricity tariff on certain parts of the U.S.
Ontario Premier Doug Ford reversed his decision, announcing that he would scrap the 25% tariff on Canadian electricity supplied to northern U.S. states, including Michigan, New York, and Minnesota.
In response to Canada backing down, Trump agreed not to increase tariffs on Canadian steel and aluminum to 50%, keeping them at 25%.
Canada had introduced the electricity tariffs on Monday as a retaliatory measure in the ongoing trade dispute, escalating tensions following Trump's earlier tariffs.
Trade War Getting Complicated
Ford said that he had spoken with Commerce Secretary Howard Lutnick, and they had agreed to meet on Thursday to discuss the reciprocal tariffs Trump plans to implement on April 2. "Ontario agreed to suspend its 25 percent surcharge on exports of electricity to Michigan, New York and Minnesota," Ford said.
As the trade war escalated, the president once again urged the United States to integrate Canada into its economic framework.
"Canada should honestly become our 51st state. we wouldn't have a northern border problem. We wouldn't have a tariff problem," Trump said.
"Canada would be great as our cherished 51st state. You wouldn't have border problems. You wouldn't have anything."
On Tuesday, Trump declared a national emergency on electricity in the U.S. and responded to Ford's electricity tariff by doubling tariffs on Canadian aluminum and steel.
