On March 12, federal cabinet ministers outlined the Government of Canada’s response to the 25% tariffs the U.S. imposed on all Canadian steel and aluminum products earlier in the day.
Following a dollar-for-dollar approach, Canada is imposing, as of March 13, 25 % reciprocal tariffs on a list of steel products worth $12.6 billion and aluminum products worth $3 billion, as well as additional imported U.S. goods worth $14.2 billion, for a total of $29.8 billion. The list of additional products affected by counter tariffs includes tools, computers and servers, display monitors, sport equipment, and cast-iron products.
These tariffs are in addition to Canada’s 25%counter tariffs on $30 billion of imports from the U.S., in response to U.S. International Emergency Economic Powers Act (IEEPA) tariffs put in place on March 4. Unless U.S. IEEPA tariffs and other U.S. tariff threats are addressed, Canada will apply counter tariffs on additional imports from the U.S. on April 2. The scope could also be further increased if new tariffs are imposed, and all options remain on the table for responding to further U.S. tariffs.
With regards to the imposition of tariffs on the steel and aluminum content in certain derivative products by the U.S., the government is currently assessing this aspect of the U.S. tariffs and may impose further counter tariffs in response.
The federal government is also taking steps to mitigate the impact of these countermeasures on Canadian workers and businesses, including by ensuring that its recently established remission process will consider requests for exceptional relief from these new tariffs.
Earlier on March 7, 2025, the Government of Canada announced measures to support Canadian workers and businesses. These measures include the Trade Impact Program through Export Development Canada to help exporters reach new markets and help companies navigate the economic challenges, favourably priced loans through the Business Development Bank of Canada to support impacted businesses in sectors directly targeted by tariffs, as well as companies in their supply chains, and new financing through Farm Credit Canada to reduce financial barriers for the Canadian agriculture and food industry.
In addition, the government introduced temporary flexibilities to the EI Work-Sharing Program to increase access and maximum agreement duration. This program provides EI benefits to employees who agree with their employer to work reduced hours due to a decrease in business activity beyond their employer’s control.
The federal government states that it will also continue to work closely with provinces and territories to ensure complementary supports are in place across all jurisdictions.