Canada has announced $21 billion in new tariffs on U.S. imports, specifically targeting computers and sports gear, as the trade war with the United States escalates.
This decision came just hours after U.S. President Donald Trump’s 25% tariffs on Canadian steel and aluminum officially took effect.
Canadian Finance Minister Dominic LeBlanc confirmed on Wednesday, March 12, 2025, that the new tariffs would apply to a range of American products, including computers, sports equipment, and cast iron goods.
“Today, I am announcing that Canada, following a dollar-for-dollar approach, will impose, starting at 12:01 a.m. on March 13, 2025, reciprocal 25% tariffs on an additional C$29.8 billion ($20.7 billion) worth of imports from the United States,” LeBlanc stated.
The affected imports include C$12.6 billion in steel products, C$3 billion in aluminum goods, and C$14.2 billion worth of other U.S. items.
This retaliation follows Trump’s warning on Tuesday that Canada would face a severe financial penalty for its newly imposed electricity tariffs on certain northern U.S. states.
Ontario Premier Doug Ford later reversed his decision, announcing that the province would lift the 25% surcharge on electricity exports to Michigan, New York, and Minnesota.
As a result, Trump agreed not to increase U.S. tariffs on Canadian steel and aluminum to 50%, opting to keep them at 25%.
The electricity tariffs, implemented by Canada on Monday, marked a significant escalation in trade tensions, originally introduced as a response to earlier U.S. tariffs.
Ford revealed that he had spoken with U.S. Commerce Secretary Howard Lutnick, and both sides agreed to meet on Thursday to discuss potential reciprocal tariffs that Trump plans to introduce on April 2.
“Ontario has decided to suspend its 25% surcharge on electricity exports to Michigan, New York, and Minnesota,” Ford confirmed.
Amid rising tensions, Trump reiterated his long-standing proposal to integrate Canada into the United States.
“Canada should honestly become our 51st state. We wouldn’t have a northern border issue. We wouldn’t have a tariff issue,” Trump stated.
“Canada would be a great 51st state. No border problems, no trade disputes—everything would be much simpler.”
Earlier on Tuesday, Trump declared a national emergency on electricity in the U.S. and responded to Ontario’s electricity tariff by doubling duties on Canadian aluminum and steel before the province eventually backed down.
