With his global tariff agenda in legal limbo, Donald Trump is doubling down on some of his original trade targets.
What happened: The president is taking another swing at Canadian manufacturing, with the U.S. set to double its tariffs on all steel and aluminum imports to 50% starting on Wednesday.
- Canada is the U.S.’s largest steel supplier and is responsible for nearly a quarter of the country’s total steel imports.
Why it matters: The tariffs threaten to completely shut Canada’s steel and aluminum industries out of its biggest market, putting billions in exports and tens of thousands of manufacturing jobs at risk.
The president of the Canadian Steel Producers Association told the Financial Times, “A 25% tariff is difficult, but a 50% one is catastrophic.”
Big picture: After setting a precedent during the Biden era that major policies need approval from Congress, the Supreme Court could end up blocking Trump’s global reciprocal tariffs. Some experts think that if that happens, Trump will lean harder on sector-specific duties to keep the pressure on trading partners to cut deals.
Bottom line: For Canada, more sector-specific tariffs are bad news that could mean exports like steel, aluminum, and autos will get hit harder.—LA