A Timeline of Canada-U.S. Tariffs on Steel and Aluminum

In 2018, significant changes occurred regarding tariffs on steel and aluminum imports between Canada and the United States, leading to various economic impacts on both sides of the border. This timeline summarizes key events related to these tariffs.

March 2018

U.S. President Donald Trump announced plans to impose a 25 percent tariff on steel imports and a 10 percent tariff on aluminum imports. The tariffs were set to take effect on June 1, 2018, which triggered economic uncertainty in Canada.

May 31, 2018

Following Trump's announcement, Canada stated its intention to impose retaliatory tariffs against U.S. products.

July 1, 2018

Canada's retaliatory tariffs took effect, affecting $16.6 billion in U.S. exports, which included steel and aluminum, as well as other products such as Florida orange juice and ketchup. This action targeted products from states with significant Republican support.

Impact on Employment

Steel pipe manufacturer Tenaris temporarily laid off 40 workers in Sault Ste. Marie, Ontario, marking the first disclosed job losses in Canada due to U.S. tariffs.

May 17, 2019

The United States and Canada reached an agreement to remove tariffs on Canadian steel and aluminum, as well as Canada's retaliatory tariffs. Both sides lifted their tariffs shortly thereafter.

August 2019

Statistics Canada released data indicating that steel and aluminum exports to the U.S. dramatically decreased after the tariffs were imposed. Steel exports dropped by 38 percent in June 2018, reaching a near 10-year low by May 2019. Also, aluminum exports averaged 19 percent lower during the tariff period compared to 2017.

Post-Tariff Recovery

After tariffs were lifted in June 2019, Canadian exports of steel and aluminum to the U.S. increased significantly, with steel growing by nearly 16 percent and aluminum by 47 percent.

August 2020

Trump indicated he would impose a new 10 percent tariff on aluminum imports from Canada, scheduled to begin on August 16, 2020.

September 15, 2020

The U.S. canceled the aluminum tariffs, agreeing to revoke current penalties before Canada could implement its own retaliatory measures.

Future Implications

In May 2024, a report by the Tax Foundation showed that the Section 232 tariffs initiated by Trump resulted in approximately 75,000 job losses in the U.S.

November 2024

Trump threatened to impose additional 25 percent tariffs on Canadian and Mexican products starting January 20, 2025, citing border security and trade imbalance as reasons.

Border Security Plan

In December 2024, Canada announced a $1.3 billion plan aimed at enhancing border security and disrupting the flow of fentanyl.

February 2025

On February 1, Trump signed an executive order imposing 25 percent tariffs on Canadian goods, suggesting a lower 10 percent duty for energy imports. Prime Minister Justin Trudeau responded with a proposed $30 billion retaliation package along with intentions for further duties.

Tariff Delays

On February 3, the implementation of the U.S. tariffs was delayed by 30 days, and Canada paused its retaliatory actions, which included a halt on tariffs and bans on U.S. alcohol sales in Canada.

Formal Announcement

On February 9, Trump confirmed that he would announce the tariffs on all steel and aluminum imports, including products from Canada and Mexico, set to start on March 4.

Impacts on Canadian Workforce

Bea Bruske, president of the Canadian Labour Congress, expressed that the prior tariffs had a devastating impact on Canadian workers, with thousands facing layoffs and uncertainty. She highlighted that many workers and employers depended on emergency government support.

This timeline illustrates the complicated nature of trade relations between Canada and the United States concerning steel and aluminum tariffs, indicating ongoing economic repercussions and workforce impacts in both nations.

Tariffs, Trade, Canada, USA, Economy