economy

Canada fights back with steep tariffs on U.S. steel and aluminum

Canada is doubling import taxes on U.S. steel and aluminum products to punish the U.S. for its own tariffs.

By Piggy PressSep 8, 20262 min read 2 new words

Photo via CNBC Finance

In simple terms

These tariffs affect the prices you pay for everyday goods and could impact jobs on both sides of the border. If you buy anything made from steel or aluminum, tariffs make those products more expensive.

Canada and the United States are in a heated trade dispute, and Canada has decided to fight back. Starting now, Canada is charging a 50% tax on steel and aluminum products coming from the U.S. — double what it was before. This is Canada's way of retaliating for U.S. tariffs (extra taxes on imports) that have made trade more expensive and difficult between the two countries.

These new duties are worth about $27.6 billion, meaning that's roughly how much Canadian trade is affected by these tariffs. The trade war between Washington and Ottawa shows no signs of slowing down, with both sides exchanging harsh words and costly economic moves. For everyday Canadians and Americans, this means prices for products containing steel and aluminum — from cars to appliances — could go up as companies pass along their higher costs.

Fun fact

Steel and aluminum are used in everything from car bodies to kitchen appliances to construction materials, so tariffs on these materials can ripple through the entire economy and affect many different products you use.

Economy

Source: CNBC Finance