U.S. Tariffs Would Stack For Canada, Official Warns

U.S. President Donald Trump's planned 25% tariffs on steel and aluminum imports would be added to existing levies on Canadian goods, resulting in a total 50% tariff if the threatened duties on all imports from Canada take effect in March, a White House official said, Jarrett Renshaw, Jasper Ward, and Philip Blenkinsop reported for Reuters.

The new measures, set to take effect on March 12, will apply to millions of tons of steel and aluminum imports from Canada, Brazil, Mexico, South Korea, and other countries that had previously been exempt under trade carve-outs.

Canada has not been officially informed about the cumulative nature of the tariffs, a Canadian government source told Reuters, adding that the scenario "sounds plausible."

Mexico, Canada, and the European Union (EU) condemned Trump's metal tariffs, as governments worldwide braced for additional levies from the new administration amid fears of an escalating global trade war.

Businesses across the U.S. also warned of economic fallout, with many manufacturing-heavy companies struggling to plan their next steps or determine whether Trump would follow through on his threats.

The tariff hike is expected to ripple through the supply chain, impacting all businesses reliant on these materials.

Earlier this week, Trump signed proclamations increasing the U.S. tariff rate on aluminum from 10% to 25%, eliminating country-specific exemptions, quota deals, and hundreds of thousands of product-specific tariff exclusions for both metals, Andrea Shalal, David Lawder, and David Ljunggren also reported for Reuters.

The new measures, set to take effect on March 12, will apply to millions of tons of steel and aluminum imports from Canada, Brazil, Mexico, South Korea, and other countries that had previously been exempt under trade carve-outs.

Mexican Economy Minister Marcelo Ebrard called the tariff decision "unjustified" and "unfair," while Canadian Prime Minister Justin Trudeau deemed the tariffs "unacceptable."

In response, European Commission President Ursula von der Leyen warned that the 27-nation bloc would take "firm and proportionate countermeasures" against the new tariffs.

"Unjustified tariffs on the EU will not go unanswered — they will trigger firm and proportionate countermeasures," von der Leyen stated, as reported by Nora Eckert and Brendan O'Boyle for Reuters.

At the Paris summit, U.S. officials, including National Security Advisor Jake Sullivan and U.S. Trade Representative Katherine Tai, were expected to discuss trade and economic policies with von der Leyen.