Question Period Note: U.S. Section 232 Tariffs on Steel and Aluminum

On March 12, the United States imposed 25% Section 232 tariffs on imported steel and aluminum products, and certain derivative products from all sources, including Canada.

» We are deeply concerned by the U.S. decision to reimpose Section 232 tariffs on Canadian steel and aluminum products.

» The tariffs are unjustified and a clear violation of U.S. trade obligations and the 2019 Joint Statement on Steel and Aluminum.

» U.S. tariffs undermine our shared economic and security interests, as well as the integrated cross border supply chains that rely on quality and timely inputs to be competitive at home and in global markets.

» The government is working hard to secure the removal of these unfair and unjust tariffs, and has taken actions to protect Canada's critical industries.

U.S. Section 232 tariffs: Further to two presidential proclamations issued on February 10, on March 12, 2025, the U.S. imposed 25% tariffs on imports of steel and aluminum and certain derivative products from all countries. In doing so, the U.S. removed all exemptions or quota systems (including tariff rate quotas) agreed to with trading partners, including the exemption for Canada provided in the 2019 bilateral Joint Statement on Section 232 Duties on Steel and Aluminum.
On March 13, Canada imposed reciprocal tariffs targeting $29.8 billion of U.S. goods, imposing 25% tariffs on steel products worth $12.6 billion and aluminum products worth $3 billion, and on additional imported U.S. goods worth $14.2 billion. Canada continues to monitor the impacts of U.S. measures on steel and aluminum content of certain derivative products.
Canada is the number one supplier of steel and aluminum to the United States ($29.8 billion in exports in 2024) and is a top destination for U.S. steel and aluminum products, reflecting complementary and integrated supply chains. The reimposition of U.S. Section 232 tariffs, and Canada's retaliatory response, have created significant challenges for integrated industries and downstream users on both sides of the border, leading to curtailments and job losses.
Steel: The Canadian steel sector produces approximately 12.2 million metric tons (mmt) of steel annually, which is just slightly below Canadian demand of approximately 13 mmt. Driven by various factors, including geographic proximity and intra-company sourcing decisions, roughly half of production is exported to the United States. Approximately $18 billion in steel goods are traded annually between Canada and the U.S.
Aluminum: Canada is the fourth largest aluminum producer in the world with an annual capacity of roughly 3.3 million tonnes. Approximately 89% of total Canadian production is exported, 95% of which is destined for the U.S. Canada supplies 60% of U.S. primary aluminum demand. Canada imported $3.2 billion in aluminum and aluminum products, specifically high-margin and value-added goods, that represent approximately 22% of U.S. aluminum exports.

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