Terrace, BC – June 3, 2025 – U.S. President Donald Trump today signed an executive order doubling tariffs on foreign steel and aluminum imports to 50%, a move set to take effect at midnight Wednesday. The decision sends shockwaves through Canadian industries, with leaders warning of devastating consequences and no exemption granted to Canada, a top supplier of both metals to the U.S.
The White House stated the new tariff rate is necessary for U.S. national security and to bolster American steel and aluminum industries, claiming the 25% tariffs imposed in March had not achieved their desired effect. The only exemption from the 50% rate was granted to the United Kingdom, which will maintain a 25% tariff under a new trade agreement framework.
Canadian labour and industry voices have reacted with alarm. Bea Bruske, president of the Canadian Labour Congress, previously called such a plan “yet another direct attack on Canadian workers and a reckless move,” warning it could shut Canada out of the U.S. market completely, threatening thousands of unionized jobs. The Canadian Steel Producers Association stated that “steel tariffs at this level will create mass disruption,” a sentiment echoed by the Aluminum Association of Canada, which called the situation “unprecedented.”
Alcoa Corp., a major aluminum producer with significant history in Canada including operations that are precursors to Kitimat’s own smelter, reported in April a US$20-million impact from existing tariffs in its last quarter, projecting a potential US$90 million in additional costs in its second quarter under such conditions.
In response, Canadian Industry Minister Melanie Joly declared on Tuesday, “We are in a trade war,” and stated the federal government plans to prioritize Canadian steel and aluminum for federal contracts and the domestic defence manufacturing industry. She also alluded to “strong counter-tariffs.” Finance Minister Francois-Philippe Champagne confirmed the government is working on measures to favour Canadian materials for major national projects.
Ontario Premier Doug Ford on Tuesday called for Canada to retaliate with its own 25% tariffs.
The U.S. move comes despite calls for a more collaborative approach to trade. David McCall, international president of the United Steelworkers union, noted that while tariffs can be a tool, wider reforms are needed “in collaboration with trusted allies like Canada” to address global trade imbalances.
Economists have previously indicated that such tariffs could lead to significant cost increases for American consumers and businesses, with U.S. government data showing steel product prices had already risen roughly 16% since the initial 25% tariffs were implemented by Trump.
The Canadian government has vowed to stand up for its workers and industries as this new phase in U.S. trade policy unfolds.
