Canada Slaps $21B in Tariffs on U.S. Goods as Trade War with Trump Heats Up

Canada has fired back at President Donald Trump’s recent trade actions by imposing new tariffs worth $21 billion on U.S. imports.

The move comes just hours after Trump’s 25% tariffs on Canadian steel and aluminum were enacted, intensifying the ongoing trade war between the two countries.

Dominic LeBlanc, Canada’s Finance Minister, announced on March 13, 2025, that the new tariffs would target U.S. products, including computers, sports equipment, and cast iron. The tariffs are part of Canada’s “dollar-for-dollar” response to Trump’s latest trade policies.

LeBlanc explained, “Today, I am announcing that the government of Canada will impose 25% reciprocal tariffs on an additional C$29.8 billion ($20.7 billion) of imports from the United States.”

This includes steel products worth C$12.6 billion and aluminum products worth C$3 billion, along with other U.S. goods valued at C$14.2 billion.

Canada Slaps $21B in Tariffs on U.S. Goods as Trade War with Trump Heats Up

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The escalating trade tensions between the two countries have been marked by a series of retaliatory tariffs. On Tuesday, Trump threatened Canada with a “financial price” for imposing tariffs on U.S. electricity, which led to Ontario Premier Doug Ford reversing a 25% surcharge on electricity exports to U.S. states, including Michigan, New York, and Minnesota.

Ford’s decision to back down came after discussions with U.S. Commerce Secretary Howard Lutnick.

Trump, undeterred by the developments, continued to push for more aggressive trade measures, calling for Canada to be brought into the fold of the U.S.

He suggested that Canada should become the “51st state,” claiming it would resolve border and tariff issues between the two countries.

The ongoing tensions, marked by tariffs and retaliations, have raised concerns over the future of trade between Canada and the U.S., with both sides digging in as the trade war escalates.

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