U.S. President Donald Trump announced on Feb. 10 that executive orders have been signed to impose 25 per cent tariffs on all steel and aluminum imports, including those from Canada, beginning on March 12. According to the White House, these tariffs will be on top of the previously announced 25 per cent tariffs on all imports from Canada, which are slated to begin on March 4. This means that steel and aluminum from Canada will face a total tariff of 50 per cent. The tariffs on all Canadian goods were initially set to begin on Feb. 4 but, following talks between Prime Minister Justin Trudeau and Trump, were delayed by a month. 

Given the deep integration of the U.S. and Canadian economies, these tariffs are likely to cause significant disruptions on both sides of the border. As a result of the tariffs, Canadian steel and aluminum producers fear that they could lose their market share to U.S. producers, be forced to cut jobs or reduce prices, meaning that their products could become unprofitable under the new tariffs.  

Meanwhile, U.S. industries dependent on Canadian steel and aluminum could encounter higher production costs due to having to pay a significant premium for materials. 

According to Statistica, Canada is currently the top supplier of steel and aluminum to the U.S., representing 23 per cent of U.S. steel imports and approximately 60 per cent of U.S. aluminum imports last year. In 2024, nearly 90 per cent of Canada’s steel and aluminum exports were to the U.S. 

Ontario and Quebec are expected to bear the brunt of the impact, with Ontario being home to six of Canada’s 13 steel plants. Its key producers include Stelco Inc., the country’s second-largest steel producer, ArcelorMittal Dofasco, Canada’s largest producer of flat steel, both based in Hamilton, as well as Algoma Steel, located in Sault Ste. Marie. 

In the case of aluminum, Canada ranks as the world's fourth-largest producer, following China, India and Russia, according to the Government of Canada. Canada has 10 primary aluminum smelters—one is located in B.C., and the other nine are in Quebec. Additionally, Quebec is home to one alumina refinery.  

According to the Aluminum Association of Canada, although the U.S. produces, at best, one million tonnes a year of primary aluminum, it consumes six times that amount. As for steel, the U.S. produced around 82 million tonnes in 2022. In 2024, the U.S. consumed an estimated 93 million tonnes of steel mill products, according to the U.S. Geological Survey. 

Reactions from Canada’s steel and aluminum sectors 

"We are deeply concerned that U.S. President Donald Trump is again threatening more tariffs on Canada, this time directly targeting the steel and aluminum sectors," said Catherine Cobden, president and chief executive officer (CEO) of the Canadian Steel Producers Association, in a statement issued on Feb. 9. "When President Trump implemented tariffs on Canadian steel in 2018, we saw massive disruptions and harm on both sides of the border, hurting both America and Canada.’’ 

Cobden noted that the Canada-US economy is highly integrated, with $20 billion in trade of steel between the two countries annually, and 40 per cent of Canada's steel imports come from the United States. 

"While the target of Canadian steel and aluminum is completely baseless and unwarranted, we must retaliate immediately," she said. She added that the association is demanding that the Government of Canada take decisive action to address the tariffs, noting that any measures imposed on Canada’s steel and aluminum sectors should be met with retaliation.  

The Aluminum Association of Canada also released a statement on Feb. 11, claiming that Canada’s aluminum industry finds Trump’s tariffs to be “unfair” and “highly disruptive.” 

“A 25 per cent tariff on our aluminum going to the U.S. will only hurt U.S. jobs, U.S. industries–including defence, automative, construction and housing,” said Jean Simard, president and CEO of the Aluminum Association of Canada, in the statement.  

Simard pointed out that, amid rising prices, implementing tariffs will only further increase costs for U.S. consumers. 

“We will continue working alongside our governments, our Ambassador and our Canadian industrial business and union colleagues, maintaining a united front,” Simard said. “We will also actively reach out to our stakeholders in the U.S.–customers, entrepreneurs, businesses, workers, elected officials–whose daily livelihood thrives on the use of our metal.” 

During a Feb. 12 visit to Washington, D.C., alongside 12 other premiers, Quebec Premier François Legault expressed his belief that Canada should consider imposing export taxes on products like aluminum to further drive up costs for U.S. manufacturers and builders that need the metal to gain leverage in negotiations with Trump’s administration, if tariffs targeting Canada are imposed.