Nations affected by President Trump’s tariffs on steel and aluminum expressed strong disapproval on Tuesday, warning of potential retaliation amid a growing trade dispute that could disrupt economic markets and strain U.S. relations with key allies.
Canadian Prime Minister Justin Trudeau labeled the 25 percent tariffs on all steel and aluminum imports as “unjustified” and “unacceptable.” He expressed hope to prevent the tariffs, set to take effect on March 12, by emphasizing their detrimental effects on both American and Canadian economies.
Trudeau indicated that Canada would collaborate with international partners to pressure the Trump administration and stated, “We will stand up strongly and firmly if we need to” regarding possible countertariffs.
European leaders also voiced intentions to retaliate against the tariffs, with Ursula von der Leyen, president of the European Commission, calling the measures “unjustified.”
Mexican officials criticized the tariffs as “unjustifiable,” asserting that they could undermine the economic integration of North America established over the past two generations. Marcelo Ebrard, Mexico’s secretary of the economy, noted the U.S. trade surplus with Mexico in steel and aluminum and appealed to Trump’s common sense to reconsider the tariffs.
The announcement of tariffs took Canadian and Mexican leaders by surprise, especially following a recent agreement that postponed similar tariffs for 30 days. This agreement involved enhancing border security between the United States, Canada, and Mexico.
The sudden implementation of tariffs has left Canadian political and business leaders feeling unsettled, as Canada’s economy is significantly smaller than that of the United States and would be adversely affected. This situation may exacerbate Canadian distrust towards the Trump administration and fuel discussions on strengthening ties with other nations.
Trump's tariff announcement occurred while he was en route to the Super Bowl, and Canada was the largest supplier of steel to the U.S. last year, followed by Brazil and Mexico. The Canadian steel industry, which employs 23,000 people, primarily exports to the U.S., while the aluminum sector, employing 9,000, relies heavily on American demand.
During his first term, Trump imposed tariffs on steel and aluminum imports globally, leading to tensions with Canada and Mexico. Although he later exempted certain countries from tariffs in exchange for export quotas, he has now threatened tariffs against Canada while suggesting the possibility of annexing the country.
Trudeau, addressing the issue in Paris, emphasized the importance of Canadian identity and unity in response to Trump’s comments. Mexico, which was the third-largest supplier of steel to the U.S. in 2024, is assessing the potential impact of the tariffs on its industry.
In the past, when Trump imposed tariffs, Mexico retaliated with countertariffs on various American products. The previous tariffs were lifted after a revised trade agreement among the three countries was signed.
Experts noted that while the previous tariffs did not yield significant benefits for American manufacturers, Trump’s renewed consideration of them aligns with his political messaging. Brazil, which exported $4.5 billion in steel to the U.S. last year, could also be affected, as tariffs on Brazilian steel might impact the U.S. coal industry due to Brazil's reliance on American coal for steel production.