Canada's Retaliatory Tariffs Against US Draw Commerce Secretary Howard Lutnick's Ire Who Thinks They Are 'Tone Deaf:' 'The British Didn't Respond, The Mexicans Didn't Respond…'

In a significant escalation of trade tensions, Canada has introduced retaliatory tariffs against the U.S., prompting criticism from Commerce Secretary Howard Lutnick. The move follows the Trump administration’s recent trade measures targeting Canadian exports.

What Happened: Lutnick expressed dissatisfaction with Canada’s “tone deaf” approach in an interview ahead of a meeting with Canadian officials on Thursday.

Canada’s tariffs target $15.6 billion worth of U.S. steel and aluminum, mirroring the U.S. tariffs on metals. Additionally, Canada imposed tariffs on $14.2 billion worth of other goods, including tools, computers, and sports equipment.

Lutnick criticized these measures, stating, “We put a tariff on steel and aluminum to make sure the dumping countries of the world stop… And what does Canada do? They put a tariff on sports equipment.”

"I mean really? This is just tone deaf," he said, according to Fortune.

Lutnick defended the U.S. tariffs as necessary for national security, emphasizing the importance of domestically produced materials for defense purposes.

He accused Canada of relying heavily on the U.S. for protection while contributing less to NATO, citing Canada’s 2024 contribution of $30.5 billion compared to the U.S.’s $967 billion.

Despite the tensions, Ontario Premier Doug Ford described the meeting with Lutnick as “productive” and expressed optimism about future discussions. Both countries’ tariffs remain in place, but Ford praised Lutnick’s business acumen and negotiation skills.

Why It Matters: The trade tensions between the U.S. and Canada have been escalating, with Canada announcing plans to impose 25% tariffs on over $20 billion worth of U.S. goods.

This move targets a wide range of products, including steel, aluminum, and sports equipment. The Canadian response is a direct counter to the U.S. tariffs on metals, which were justified by the Trump administration on national security grounds.

Elon Musk-led Tesla Inc. TSLA has seen its products excluded from rebates in British Columbia, a move linked to the ongoing trade tensions.

This exclusion affects Tesla’s electric vehicle charging stations and home batteries, highlighting the broader impact of the trade dispute on various industries.

Furthermore, the dairy sector has been a point of contention, with high tariffs on U.S. dairy products being a longstanding issue. These tariffs can reach up to 298.5% when U.S. exports exceed quotas set under the United States-Mexico-Canada Agreement.

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