WASHINGTON — U.S. President Donald Trump signed an executive order on Tuesday to double steel and aluminum tariffs, as Canadian officials say they're still hoping for a good outcome from meetings in Washington.
In March, Trump imposed 25 per cent tariffs on steel and aluminum imports to the United States. Trump announced his intention to increase the duties to 50 per cent at a steel plant on Friday, and the order follows through on that promise. It takes effect just after midnight.
When asked whether there would be exemptions during Tuesday's media briefing, White House press secretary Karoline Leavitt said Trump "made that announcement in Pennsylvania and he plans to deliver on that promise to Pennsylvania."
The increase doesn't apply to imports from the United Kingdom, which remain at 25 per cent while the Trump administration continues to work out details of a trade deal announced last month.
Canada is the largest steel supplier to the United States, accounting for nearly 25 per cent of all imports in 2023. About a quarter of all steel used in America is imported.
Canadian industries have said the tariffs will have a devastating impact and have called on Ottawa to provide support.
Prime Minister Mark Carney issued a statement Tuesday evening, calling the tariffs "unlawful and unjustified."
"Canada’s new government is engaged in intensive and live negotiations to have these and other tariffs removed as part of a new economic and security partnership with the United States," he said.
Despite the higher duties that will hammer Canada's steel and aluminum industry, Canada's U.S. ambassador Kirsten Hillman and Canada-U.S. Trade Minister Dominic LeBlanc said they were optimistic following a meeting with U.S. Commerce Secretary Howard Lutnick on Tuesday afternoon.
"Every time we have these conversations, I think we deepen our understanding of each other's positions," LeBlanc said. "And I'm hopeful that we can get to the best outcome for Canadians."
LeBlanc said Lutnick listens carefully, takes notes and asks questions. Hillman said they talked with the commerce secretary about ways to address U.S. concerns, citing the dumping of steel and aluminum in other countries that drives down domestic production.
"It's going to take a bit of time but we had positive conversations," Hillman said. "I think we both came out feeling good."
Earlier Tuesday, U.S. Ambassador to Canada Pete Hoekstra gave a Canadian audience a similarly positive reflection on the bilateral relationship that has been rocked by Trump's tariffs and threats to make Canada a U.S. state.
Speaking at a Toronto event organized by the Empire Club of Canada, Hoekstra said Trump's tariffs can be an opportunity for Canada.
The president hit Canada with economywide tariffs related to fentanyl in March, but walked the levies back a few days later for imports compliant under the Canada-U.S.-Mexico Agreement on trade, called CUSMA.
Trump has also hit Canada with 25 per cent tariffs on automobiles, with an exemption for American-made components in vehicles. Hoekstra, a former congressman for Michigan, said as Ottawa and the Trump administration go through these negotiations, "our chief competitor here is China."
"How do we use the strengths of the U.S. auto industry? How do we use the strengths of the capabilities of Canada, and how do we bring those together in such a way that we’re beating China and not each other?" Hoekstra said.
The president still seems committed to his goal of realigning global trade through tariffs. He posted on social media Tuesday that "Because of Tariffs, our Economy is BOOMING!"
The Organization for Economic Co-operation and Development issued an updated forecast for U.S. economic growth Tuesday that was sharply lower than what was forecast just two months ago, attributing the drop in part to higher trade costs and uncertainty caused by Trump's tariffs.
The OECD global economic outlook projected the U.S. economy will grow 1.6 per cent in 2025, and 1.5 per cent in 2026, compared with 2.8 per cent in 2024.
Economists have said the higher tariffs could lead to significant cost increases for Americans. The government's producer price index says the price of steel products has gone up roughly 16 per cent since Trump implemented the tariffs.
Trump imposed 25 per cent steel tariffs and 10 per cent aluminum levies during his first administration for about a year.
The Washington-based Tax Foundation reported that during that period, companies were forced to pay higher prices and the duties resulted in the loss of about 75,000 manufacturing jobs.
The Peterson Institute for International Economics concluded that each job saved in steel-producing industries by the tariffs came at a high cost to consumers — roughly $650,000 per job.
On May 30, after Trump announced he was doubling the tariffs, Canadian Labour Congress president Bea Bruske said it was "yet another direct attack on Canadian workers and a reckless move that will send shock waves across the Canadian economy."
"This decision will shut us out of the U.S. market completely, devastating Canada’s steel and aluminum industry and threatening thousands of good-paying, unionized Canadian jobs," Bruske said.
This report by The Canadian Press was first published June 3, 2025.
Kelly Geraldine Malone, The Canadian Press
