As the old proverb goes, steel sharpens steel — and steel tariffs sharpen steel tariffs.
What happened: Counter-tariffs on $29.8 billion worth of U.S. steel and aluminum imports (plus other goods like sports equipment and computers) came into effect today. It was a lightning-quick response by the feds to 25% U.S. tariffs on all foreign steel and aluminum.
- This is in addition to tariffs on $30 billion worth of U.S. goods that took effect earlier this month, which are set to expand to another $125 billion worth of goods in April.
Why it matters: The feds increasingly believe that President Donald Trump’s tariff goal isn’t ensuring U.S. economic security or curbing fentanyl trafficking — he wants to economically ruin Canada so it’s easier to annex. Piling on retaliatory tariffs is the quickest way to hit back.
- “The only constant seems to be President Trump's talks of annexing our country through economic coercion,” Foreign Affairs Minister Mélanie Joly said yesterday.
Zoom out: The European Union has joined the retaliatory tariff brigade, announcing measures that would cover $40 billion worth of U.S. goods, from motorcycles to bourbon. The tariffs will come in two batches, kicking in on April 1 before expanding on April 13.—QH