Trump’s 50% tariff on steel, aluminum now in effect

Canada's steel industry warned the doubling of tariffs could create 'mass disruption' for the sector, while aluminum producers call the situation 'unprecedented.'

U.S. President Donald Trump’s doubling of tariffs on foreign steel and aluminum is now in effect, duties that Canada’s industries say will create “mass disruption.”

The order laid out plans to increase the duties from their previous rate of 25 per cent, saying it was necessary for national security reasons and to bolster those industries in the U.S., but added that the original tariffs imposed in March didn’t have the desired effect.

There were no exemptions for Canada, but the U.K., which signed a new trade framework last month, will see its tariff rate remain at 25 per cent.

Canada’s steel and aluminum industries have warned that doubling the rate would have damaging impacts for producers and the North American supply chains.

About a quarter of all steel used in the U.S. is imported and Canada is its largest supplier.

“The steel and aluminum tariffs will apply only to the steel and aluminum contents of imported products, whereas the non-steel and non-aluminum contents of imported products will be subject to other applicable tariffs,” the White House said in reference to other countries.

The doubling comes slightly less than three months after Trump imposed the original rate, duties that were last seen during his first term in office on the same industries.

The initial impacts of those tariffs have led to cost increases for Canadian metals producers, with the industry saying the North American sector could face “unrecoverable consequences” if the doubling occurs.