Canada has sharply increased duties on American steel imports in response to President Donald Trump’s abrupt end to trade talks.
The Canadian government imposed an import quota late Friday, and any American steel shipments exceeding that limit will now face a 50% surcharge.
Finance Minister François-Philippe Champagne said the measure is meant to protect Canada’s steel industry from what he called “unjust US tariffs,” according to NBC News.
The move follows Trump’s declaration on Truth Social that Canada is a “very difficult country to trade with.” His post came just hours before Canada’s announcement.
Trump’s decision to cut off trade negotiations centered on Canada’s digital services tax, which is set to take effect Monday. The tax targets large tech firms profiting from Canadian users.
“Based on this egregious tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,” Trump posted. He accused Canada of launching “a direct and blatant attack on our Country.”
Canada’s new tax will apply to digital companies making over $15 million in revenue from Canadian internet users, per the Daily Mail.
The tax is set at 3% and is retroactive to 2022.
The levy is expected to impact major American companies such as