U.S. President Donald Trump’s doubling of tariffs on steel and aluminum this week spells economic trouble for Canada and Asia, as companies looking to export to the U.S. find themselves nearly priced out of the market.
Trump announced that tariffs would increase from 25 to 50 per cent last week during a rally. He said the hike would “secure the steel industry in the United States,” adding: “Nobody’s going to be able to steal your industry.”
In 2024, the U.S.’s top steel suppliers were Canada, Brazil, Mexico, South Korea, Vietnam, and Japan, in that order. Of Canada’s 13 steel plants, six are in Ontario.
The initial round of tariffs led to Canadian job losses. Trump’s recent tariff hike also sparked a backlash in Japan, even after the president green-lit the takeover of U.S. Steel by Japan-based Nippon Steel.
Trump’s tariffs spurred British Columbia Premier David Eby to embark on a 10-day trade mission to Japan, Malaysia, and South Korea. Eby told media last weekend that, “our relationship with overseas markets ... is more important than ever.” In 2023, 54 per cent of B.C. exports sent abroad were destined for the U.S.
In contrast, according to an RBC analysis, “Ontario, Quebec, Alberta, and New Brunswick’s exports to the U.S. account for over 70 per cent of their total exports.”
