Market Analysis

Image Credit: Reuters

U.S. President Donald Trump’s planned 25% tariffs on all steel and aluminum imports would be combined with existing levies on Canadian goods, leading to a total 50% tariff, according to a White House official on Tuesday.  

A Canadian government source told Reuters that Canada had not been informed about the cumulative tariffs but noted it “sounds plausible.” Earlier this month, Trump imposed 25% tariffs on most Canadian imports, though those were temporarily paused for 30 days last week.  

On Monday, Trump signed orders raising the U.S. tariff rate on aluminum from 10% to 25%, while also removing country-specific exemptions, quota agreements, and several product-specific tariff exclusions for both metals.  

The new tariffs, set to take effect on March 12, were strongly opposed by Canada, with Prime Minister Justin Trudeau labeling them as “unacceptable.”  

The Canadian Press reported that Trudeau discussed the potential impact of the steel tariffs on Ohio with U.S. Vice President JD Vance, who previously represented the state in the U.S. Senate.

Paraphrasing text from "Reuters" all rights reserved by the original author