US President Donald Trump has declared his intention to officially implement a 25% tariff on all imports of steel and aluminum, which will impact Canada and Mexico. Trump made this announcement during a press conference on Air Force 1 while en route to New Orleans for the Super Bowl.
The initial tariffs on steel and aluminum were imposed by Trump during his first term in March 2018, using national security as his rationale. Initially, Canada was exempt from these duties, but they were ultimately imposed on May 31, 2018. In response, Canada implemented counter-tariffs on American goods, including Florida orange juice.
However, a resolution was reached on May 17, 2019, when the White House declared a deal to prevent “surges” in the steel and aluminum supplies from Canada and Mexico, effectively ending the trade dispute.
During a recent interview with Fox News, Trump expressed his desire for Canada to become a state due to a baseless claim that the US is “paying $200 billion a year” to Canada. He suggested that Canada would be better off as a state, and he’d be fine with subsidizing Canada if it was a state, referring to the US trade deficit with Canada.
However, Statistics Canada disputes Trump’s claim, stating that Canada’s overall trade surplus with the U.S. was $94.4 billion in 2023, primarily due to oil exports.
Trump’s comments have sparked reactions from Canadian leaders. Prime Minister Justin Trudeau, speaking to business leaders, warned that Trump’s talk of making Canada a state is serious. Meanwhile, Bloc Québécois Leader Yves-François Blanchet addressed Trump in a social media post, stating that there is no scenario where the U.S. will produce enough aluminum to replace what it gets from Quebec before the end of Trump’s term.
In spite of the trade issues, Trump’s official justification for threatening tariffs remains border security issues related to fentanyl and illegal immigration. However, both Canada and Mexico have been granted a 30-day reprieve from the tariff threat after Trudeau and Mexican president Claudia Sheinbaum discussed their respective border plans with Trump.
