Tariffs of 25% on imported steel and 10% on aluminum announced by U.S. Commerce Secretary Wilbur Ross
Canada is countering the United States' move to slap punishing tariffs on steel and aluminum imports by imposing dollar-for-dollar tariffs of its own on everything on from steel products to maple syrup.
Foreign Affairs Minister Chrystia Freeland said Canada is hitting back with duties of up to $16.6 billion on some steel, aluminum and other products from the U.S. — including beer kegs, whisky, toilet paper and "hair lacquers."
She and Prime Minister Justin Trudeau made the announcement at a press conference hours after U.S. Secretary of Commerce Wilbur Ross confirmed the United States is following through on its threat to impose tariffs of 25 per cent on imported steel and 10 per cent on imported aluminum, citing national security interests.
"This is the strongest trade action Canada has taken in the post-war era. This is a very strong response, it is a proportionate response, it is perfectly reciprocal. This is a very strong Canadian action in response to a very bad U.S. decision," Freeland told reporters.
Trudeau called the Trump administration's national security argument "inconceivable" and called the tariffs "an affront to the Canadians who died" alongside Americans in battle.
About 90 per cent of Canada's steel exports head to the United States, according to the Canadian Steel Producers Association. Steel is produced in five provinces, but the industry is heavily concentrated in Ontario.
Mexico responded swiftly with tariffs of its own on U.S. exports of pork bellies, grapes, apples and flat steel, the Associated Press reported.
The EU also announced it would launch a dispute settlement case at the WTO and impose "rebalancing measures."
"Today is a bad day for world trade. We did everything to avoid this outcome," said EU Commissioner for Trade Cecilia Malmström.
"The U.S. has sought to use the threat of trade restrictions as leverage to obtain concessions from the EU. This is not the way we do business."
Ross tried to deflect suggestions the tariffs would damage ongoing NAFTA talks and the upcoming G7 meetings in Quebec.