Canada to Impose Counter-Tariffs After Trump’s Tax Hike on Metal Imports

The latest $28 billion blow for U.S. exports will come next month as the EU imposes tit-for-tat tariffs on U.S. goods after the imposition of tariffs on steel and aluminum by the United States. "In this case, EU import tariffs will initially be applied to products worth 26 billion euros," the Commission announced Wednesday.

Albanese, speaking from Washington, D.C., declared in no uncertain terms that the tariffs are "unjustified" and "against the spirit" of Australia's enduring friendship with the United States. He further laments that Australian products were excluded as well during Trump's original enforcement of tariffs. “This is not a friendly act," Albanese stated.

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Amid worsening fears of a trade-induced slowdown, the U.S. stock market has taken a heavy beating. The S&P 500 seems to be down 8% over the past month. On a different note, economists have raised the concern that while the tariffs can serve the steel and aluminum producers in the U.S. in the short run, the increased costs can create havoc for the larger manufacturing sector which relies on these metals.

He also noted that he had threatened to impose tariffs of 50% on steel and aluminum from Canada, but decided to stick with the 25% rate because Ontario suspended plans to levy a surcharge on electricity sold to Michigan, Minnesota, and New York.

Responding to Trump's tariff threats, investors sold steelmakers' shares in Asian markets, including India. The shares of the SAIL (Steel Authority of India) fell 4.67 per cent on the BSE with shares of Tata Steel losing 3.11 per cent, JSW Steel being down 2.20 per cent and Jindal Steel And Power Ltd down by 0.72 per cent. Last year, the Union Ministry of Steel of India asked the ministry of commerce to impose a 25% duty on steel products because between January and July 2024, steel imports from China surged by 80% to 1.61 million tons.

The historic U.S. tariffs on steel and aluminum triggered counter-tariffs for products originating from the U.S. valued at 26 billion euros ($28.33 billion). This was stated in a public statement by the Commission on Wednesday.

According to reports, India's exports of primary steel to the U.S. for 2024 have garnered $450 million, while last year the U.S. imported merely $2.83 million worth of steel pipes, tubes, and related products from India. The aluminum and associated products exports to the U.S. have been reported at $820 million for 2024.

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Amid rising steel imports into the country, a safeguard duty investigation was already initiated by the Ministry of Commerce and Industry on December 19, in consideration of inputs by various steel manufacturers under the Indian Steel Association (ISA) that assert that there has been a sudden and sharp increase in volume of imports ever since US President Donald Trump imposed a 25 percent duty on steel in his first term.

According to a letter from ISA to the Ministry of Commerce and Industry, soon after the 25 percent duty under Section 232 was imposed by the US under its Trade Expansion Act, 1962, the country became subject to a high increase in steel product imports along with retaliatory measures from various nations.

As reported by Reuters, Canada, Brazil, and Mexico are the largest sources of steel imports into the US with South Korea and Vietnam coming next in line, as per government data and American Iron and Steel Institute. Hydropower-rich Canada has by far the largest share of primary aluminium metal supplied to the US, 79 percent of total imports during the first eleven months of 2024.

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