Canada's steel industry warned of "catastrophic" unemployment, factory slowdowns and supply chain disruptions after U.S. President Donald Trump increased tariffs on imports to 50%.
Trump's latest tariff move sparked anger across the border as Canadian Prime Minister Mark Carney didn't travel to the White House until last month to fix relations after Washington imposed heavy taxes on its largest trading partner.
Canada is the largest steel and aluminum supplier in the United States, accounting for nearly a quarter of U.S. steel imports in 2023, accounting for about half of aluminum imports last year.
"The difficult 25% tariff is a catastrophic 50%" said Catherine Cobden, president of the Canadian Steel Producers Association.
Steel is a $15 billion ($11 billion) industry that employs 23,000 Canadians and supports another 100,000 indirect jobs, according to CSPA.
"The steel tariffs at this level will cause quality disruptions and negative impacts among our highly integrated steel supply chain and customers on both sides of the border," Cobden said.
As newly elected prime minister, Carney went to the Oval Office in early May, hoping to reset Trump's threat to Canada's annexation and reach damage with 25% tariffs.
The two leaders said they were willing to renegotiate the US-Mexico-Canada Agreement, which inherited the NAFTA during Trump's first term and will be reviewed next year.
But Trump will double the steel and aluminum tariffs to 50% as the global trade war escalates on Friday at a rally in West Mifflin, Pennsylvania.
Cobden said Trump's new threat "essentially shut down the U.S. market" to Canada and would "have irrecoverable consequences."
The Canadian Aluminum Association said they are waiting for "clearer, more formal legal confirmation" before commenting on the potential impact.
International Trade Minister Dominic Leblanc said Canada remains “resolute” in defending its workers and communities.
"When we build new economic and security relationships with the United States, Canada's new government will provide the best deals for Canadians," he said in an article on social media platform X on Saturday.
The tariff announcement was released the same week, with Trump saying Canada would make Canada $6.1 billion part of his ambitious "Golden Dome" missile defense shield, but would be free if Ottawa abandoned its sovereignty and became the 51st state in the United States.
A spokesman said Carney “is clear on every opportunity, including in conversations with President Trump, Canada is an independent sovereign state and that will be one.”
The U.S. president touted a $15 billion partnership between Nippon Steel and US Steel at a rally in Pennsylvania Friday, where he promised to establish a tariff "fence" around domestic metal production, a tax increase announced by the U.S. president on Friday.
The president wrote in a social post after the event that the new tax will take effect on Wednesday.
Earlier this week, the U.S. federal appeals court suspended a ruling that held that Trump's "liberation day" enclosed illegal collections.
Canada announced a “dollar-to-dollar” response to U.S. tariffs that will affect steel products worth $12.6 billion, aluminum products worth $3 billion, and additional commodities worth $14.2 billion.
These tariffs, launched in March, were initially retaliatory taxes on US goods of $3 billion. But in mid-April, Canada quietly eased its stance by relaxing some countermeasures from U.S. automakers and manufacturers.
Canada's ministers and governors will meet in Saskatoon, Saskatchewan on Monday as part of Carney's efforts to free the economy from over-dependence on the United States.
“This is not a trade policy, but a direct attack on Canadian industry and workers,” said Marty Warren, national director of the Canadian United Steel Workers.
"Thousands of Canadian jobs are working hard, and communities relying on steel and aluminum are at risk. Canada needs to respond immediately and defend workers."
Goldy Hyder, chairman of the Canadian Business Council, said it would be better to "don't bait from Trump's statement" and focus on renewing the USMCA.
"These moving posts are just trying to make Canada pay more," he said.