COUNTERPUNCH! Canada Slaps US With Tariffs Worth $30B, In Line With European Union
(Image courtesy of CBC)
Early Wednesday, Canadian Finance Minister Dominic LeBlanc announced that Canada will hit the US with nearly $30 billion worth of tariffs on American steel, aluminum, and consumer goods. This came in response after United States President Donald Trump imposed 25 percent tariffs on all steel and aluminum imported into the US on Tuesday. The Canadian tariffs are set to kick in at 12:01 a.m. EST Thursday March 13th.
The Canadian response is unified with the European Union, who announced trade actions that will tariff American goods worth $40 billion CAD with the measures including not just steel and aluminum but agricultural items, home appliances, peanut butter, jeans, among other consumer products. The European tariffs also target items that are made in primarily Republican areas of the US, such as beef from Nebraska, produce from Alabama, and soybeans from Louisiana.
Trade War a Result of Trump’s ‘America First’ Vision
All of these trade disruptions come as a result of President Trump’s plan to remake the global trade alliance system to benefit the US more forcefully, with the president saying that allies have used US trade to benefit themselves at the expense of American citizens.
However, the president’s plans have faced pushback not just from American lawmakers but the business community with the Dow Jones and S&P 500 indexes down 6.5 percent and 7 percent from a month ago respectively as investors fear a bear market. The American people seem apprehensive as well with 61 percent of Americans disapproving of his tariff policy and 56 percent disapproving of his handling of the economy.
Canadians Support Tough Approach on US Relations
In Canada, the situation is the opposite with two-thirds of Canadians saying they will avoid purchasing US goods in the future and a comparable number saying they will avoid US travel. The issue is also potent politically with Ontario Premier Doug Ford, who ran an aggressive anti-tariff campaign, was reelected handily with a majority government after he called a snap election, keeping him in power till 2029.
The federal Liberals have also received an incumbent boost with a new Leger poll, one of Canada’s most popular pollsters, having the Conservatives and Liberals tied at 37 percent. Mapped out, this result would give the Liberals a 4th term and possibly a majority government under newly elected leader, Mark Carney.
Canada-US Relationship At Lowest Point in Modern History
The economic trade war between Canada and the US has destabilized relations between the two historically close allies. In Canada, the politically advantageous side appears to be adopting a hardline against Trump. With the USMCA trade deal set to be reviewed in 2026, many Canadians hope that diplomatic relations don’t deteriorate further by that time.
