Canada to Raise Steel and Aluminum Counter-Tariffs, Impacting U.S. Producers

Canada is set to escalate its trade dispute with the U.S. by imposing counter-tariffs on steel and aluminum imports starting July 21. The measures mirror existing U.S. duties of 50%, announced by Canadian Prime Minister Mark Carney following the G7 summit deadline. Procurement policies will now favor Canadian suppliers and reliable trade partners, with retroactive tariff quotas hitting 100% of 2024 levels for non-free trade agreement countries.

U.S. steel producers like U.S. Steel (X), Cleveland-Cliffs (CLF), and Nucor Corp. (NUE) face direct exposure to the retaliatory move. The escalation follows President Trump's June decision to hike metals tariffs to 50%, straining Canada's industrial sector. Market resilience will be tested as tit-for-tat protectionism reshapes North American trade flows.