Investing.com - Canada is due to announce retaliatory tariffs on the U.S. amounting to C$29.8 billion in response to President Donald Trump’s steel and aluminum tariffs, Reuters reported on Wednesday.
The news service cited an unnamed Canadian official.
Trump’s expanded tariffs on steel and aluminum came into effect on Wednesday, marking the latest salvo in his drive to overhaul the U.S. trading relationship with both friends and foes alike.
The move, which aims to bolster protections for U.S. manufacturers of steel and aluminum, restores effective global levies of 25% on all imports of these metals from any country in the world. The scope of the duties have also been increased to include a range of downstream products -- or "derivative" goods -- like metal furniture and hinges.
Although the tariffs have received the backing of domestic steel and aluminum producers, economists have flagged that the action could drive up the costs of everyday items like tin cans and cars -- and eventually place a drag on the broader economy.
Canada is the largest foreign supplier of steel and aluminum to the U.S.
On Tuesday, Trump threatened to double import duties on Canadian steel and aluminum imports in response to a 25% levy imposed by the province of Ontario on electricity exports to the U.S. However, Ontario later dropped the trade tax and Trump backed down from his warning.
The incident marked the latest twist in an on-again, off-again series of import tariffs on Canada by the White House. Meanwhile, it remains to be seen how incoming Prime Minister Mark Carney’s approach to trade negotiations with Washington will differ, if at all, from current leader Justin Trudeau. Carney has said he could not speak with Trump until he is formally sworn in as Prime Minister.