Tariff Update: U.S. Imposes 50% Duty on Steel, Canada’s Energy Production Hits Record Levels

U.S. President Donald Trump has raised tariffs on Canadian steel and aluminum imports by an additional 25%, bringing the total duties to 50%. The new policy is in effect immediately, said Trump on social media.

Trump said he was imposing the latest tariffs in response to a decision by the Ontario government in Canada to place a 25% tax on electricity exports to the U.S. The Canadian surcharge is in retaliation to the sweeping 25% tariffs that Trump had placed on most imports from Canada.

“Based on Ontario, Canada, placing a 25% Tariff on “Electricity” coming into the United States, I have instructed my Secretary of Commerce to add an ADDITIONAL 25% Tariff, to 50%, on all STEEL and ALUMINUM COMING INTO THE UNITED STATES FROM CANADA, ONE OF THE HIGHEST TARIFFING NATIONS ANYWHERE IN THE WORLD,” Trump wrote on Truth Social, using all-caps to make his point.

Canada’s Energy Production

At the same time, new data shows that Canada’s energy production has hit record levels despite ongoing turmoil caused by the threat of U.S. import tariffs on crude oil and natural gas. Statistics Canada reports that crude oil production in Canada rose 2% year-over-year in December 2024 to 27.1 million cubic meters, which is an all-time high.

Exports of crude oil and equivalents also reached record levels last December, rising 2.1% from a year earlier, driven by surging shipments to the U.S. via rail and tanker ships. Natural-gas output also reached a record level within Canada as demand in the U.S. rose with cold winter temperatures. Statistics Canada noted that 95% of Canada’s crude oil exports went to the U.S.

Trump has been threatening to impose a 10% tariff on all imports of Canadian energy products since his re-election last November. However, U.S. Energy Secretary Chris Wright recently said that a deal with Canada to avoid tariffs on imports of crude oil and natural gas is possible. Speaking to CNBC, Wright said, “We can get to no tariffs or very low tariffs but it’s got to be reciprocal.”

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