Canada has announced new measures on U.S. steel imports in response to President Donald Trump’s decision to end trade negotiations over Canada’s plan to implement a digital services tax on large technology companies.
In a statement posted on Truth Social, Trump described Canada as “a very difficult country to trade with” and criticized its incoming levy on tech firms as “a direct and blatant attack” on the United States. He declared that all trade discussions with Canada were being terminated immediately and said details of new U.S. tariffs on Canadian exports would be released within a week.
Last week, Canada’s finance minister confirmed the government would move forward with the digital services tax despite U.S. opposition. The tax applies to any technology company earning more than $15 million from Canadian users and is retroactive to 2022, with the first payments due starting June 30. A lobbying group for major tech companies estimates the tax could cost U.S. firms up to $3 billion.
In response to the termination of trade talks, Canada’s government announced late Friday that it would impose a quota on certain steel imports from the United States and apply a 50% surcharge on shipments that exceed the new limit. The finance minister stated the move is intended to protect Canadian industries from what the government described as “unjust U.S. tariffs” and said Canada remains ready to take additional steps if needed.
Canada is the United States’ second-largest trading partner and a major supplier of steel and aluminum. Currently, the U.S. imposes a 25% tariff on Canadian imports that do not comply with the U.S.-Mexico-Canada Agreement, with energy products subject to a lower 10% rate. Canadian steel and aluminum exports are also impacted by a separate 50% U.S. tax, alongside a 25% tariff on foreign vehicles and auto parts.
Earlier on Friday, U.S. Treasury Secretary Scott Bessent indicated there was a possibility the administration would extend its trade deal deadlines and adjust tariffs on a country-by-country basis. However, Trump later clarified that the July 9 deadline could be extended or shortened, depending on further developments.
Despite the trade tensions, U.S. markets showed resilience, with the S&P 500 and Nasdaq both closing at record highs after an initial dip following Trump’s announcement.
#SupplyChainNews #Tariffs #TradeUpdate #USCanadaTrade #SteelIndustry
