Trade Cases
Canada retaliates with tariffs on US steel, aluminum; EU plans counterattack too
Written by Laura Miller
March 13, 2025
Canada and the European Union are retaliating against what they deem to be unjustified tariffs on steel and aluminum by the United States.
On Thursday, Canada imposed 25% reciprocal tariffs on steel, aluminum, and other goods imported from the US. The move was in direct response to the US reinstatement the day before of 25% Section 232 tariffs on steel and aluminum from all countries, with no exceptions.
At the same time, the EU is preparing countermeasures of its own.
Canada strikes back
As of Thursday, Canada has 25% tariffs on the following imports from the US: $12.6 billion worth of US steel products, $3 billion worth of aluminum products, and $14.2 billion worth of other goods, for a total of $29.8 billion.
The list of tariffed goods includes HTS code Chapters 72, iron and steel, and 73, articles of iron and steel. It includes semi-finished steel, flat-rolled steel, long products, pipe and tube, and other downstream products.
Unlike the US, Canada has a system for requesting remission from duties.
These levies are direct reciprocation for the US S232 tariffs and will remain in place until the US removes the steel and aluminum tariffs, the Canadian government said.
Furthermore, the government said it is evaluating the duties on certain derivative products and may respond with additional counter-tariffs.
The reciprocal tariffs are in addition to the 25% retaliatory tariff Canada placed on $30 billion of American products, including steel-intensive refrigerators, washing machines, dishwashers, stoves, and ranges, on March 4. That levy remains in place despite the US granting a 30-day pause on the blanket tariff for USMCA-compliant goods.
On Thursday, Canada took the quarrel to the World Trade Organization (WTO). It requested dispute consultations with the US for the steel and aluminum duties, saying they are inconsistent with US obligations under the General Agreement on Tariffs and Trade (GATT).
This is Canada’s second request this month for WTO involvement in the US tariff mess. On March 5, it requested consultations over the US blanket tariff on Canadian goods.
Last month, China also disputed the US 20% general tariff on all Chinese goods at the WTO.
EU countermeasures forthcoming
The European Commission on Tuesday launched “swift and proportionate countermeasures on US imports into the EU.”
“The Commission regrets the US decision to impose such tariffs, considering them unjustified, disruptive to transatlantic trade, and harmful to businesses and consumers, often resulting in higher prices,” it said.
The measures include reinstating 25% “rebalancing tariffs” on April 1 and implementing additional and new countermeasures on US products by mid-April.
Some steel as well as pipe and tube products are included on the previously suspended rebalancing tariff list.
In total, the EU countermeasures could be applied to over $28 billion worth of US goods, matching the scope of US tariffs on goods from the EU.
An SMU analysis of US export data revealed the five EU countries that purchased the most American steel last year accounted for just under 1% of total US steel exports. Combined, Germany, Belgium, Italy, Sweden, and France received 90,157 short tons of US steel products.
Laura Miller
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