Daijiworld Media Network- Washington (DD)

Washington, Jun 5: In a move that has rattled one of America’s oldest allies, US President Donald Trump has doubled tariffs on imported steel and aluminium to 50%, dealing a sharp economic blow to Canada — the United States' largest supplier of the two metals.

The announcement, made during Trump’s speech in Pittsburgh on Tuesday, comes just 10 days before the G7 Summit in Alberta, where Trump is scheduled to meet Canadian Prime Minister Mark Carney. While Trump framed the move as a protective measure against China, trade data tells a different story — Canada supplies nearly 90% of its steel and aluminium to the US, while China contributes less than 2% of total US steel imports.

Reacting to the decision, Prime Minister Carney slammed the hike as “unjustified and illegal,” vowing to challenge it at the World Trade Organization (WTO) under the General Agreement on Tariffs and Trade (GATT). “This isn’t about China. The numbers speak for themselves — Canada is being unfairly targeted under the guise of national security,” Carney stated.

The ripple effect of this decision is already being felt in Canada’s manufacturing heartlands. In Ontario, Ivaco Rolling Mills has laid off over 100 workers, with fears of further job losses across the sector. The Canadian Metal Processing Group has warned that small and mid-sized firms may not survive prolonged trade instability, especially with reduced demand from their biggest export market.

To mitigate the impact, Ottawa has unveiled a CAD 5 billion Trade Impact Program to help domestic exporters pivot toward alternative global markets. Revised investment protection guidelines have also been introduced to safeguard local companies from opportunistic takeovers during this vulnerable phase.

Despite mounting criticism, Trump has justified the move by citing national security concerns, stating, “You need steel in a war — and if it’s China, do you think they’ll keep selling it to us?” His remarks have triggered backlash in Canada, where officials argue that such logic disregards decades of strategic and economic partnership.

Ontario Premier Doug Ford voiced his frustration, saying, “We can’t be kicked around anymore. Canadians are already feeling the pinch — from cars to construction materials to everyday appliances.” Studies show US consumers have also paid 16% more for metal-based goods since the last round of tariffs.

Though Canada has not yet responded with retaliatory tariffs, officials have confirmed that “all options remain on the table.” In 2018, Canada had imposed duties on $29 billion worth of American imports in response to a similar trade spat.

As tensions rise, the upcoming Trump-Carney meeting at the G7 Summit in Kananaskis is being closely watched. Observers believe the outcome could redefine the future of US-Canada trade ties — and possibly, the broader balance of North American economic relations.