Prime Minister Mark Carney announced Canada would quickly consider retaliatory tariffs against President Trump's 50% tariffs on Canadian steel and aluminum, which took effect Wednesday.

"The latest tariffs on steel and aluminum are unjustified, they're illegal, they're bad for American workers, bad for American industry, and of course for Canadian industry as well," he told reporters on his way to a caucus meeting.

Carney noted Canada maintains counter-tariffs on over $90 billion of U.S. imports, but the new U.S. tariffs are expected to severely impact Canadian industries, pressuring further retaliation despite existing measures.

Back in February, President Trump imposed tariffs on Canadian steel and aluminum for the second time in seven years. Similar 25% tariffs in a 2018 trade war devastated Canadian businesses and exports, according to the Department of Industry.

Canada, in trade talks with the U.S. over steel and aluminum tariffs, refrained from retaliating until recently to avoid tensions with the Trump administration, which has engaged in a global trade war.

"This defies all logic," said Quebec Premier François Legault, concerned about the economic fallout, job losses, and higher car prices.

President Trump earlier invoked Section 232 of the Trade Expansion Act of 1962 on February 11, suggesting that tariffs on steel and aluminum imports were a matter of national security.

Ontario Premier Doug Ford said it was his understanding Canada is "close to making a deal" with the U.S., but said he would still like to see retaliatory tariffs.

"As I've always said, it's tariff for tariff, dollar for dollar," he said, and floated the idea of bringing back a 25 per cent electricity surcharge to the U.S. as a retaliatory measure.

"Everything's on the table right now."

Trump doubled U.S. tariffs on steel and aluminum imports from 25% to 50% yesterday to prevent cheaper foreign products from undercutting American competitiveness.

"In my judgment, the increased tariffs will more effectively counter foreign countries that continue to offload low-priced, excess steel and aluminum in the United States market," it read.

Canadian steel and aluminum industries are suffering significant export declines to the U.S. due to new tariffs. Over 90% of Canada's steel and aluminum exports went to the U.S. in 2024.

In April, manufacturing saw 30,600 job losses (a 1.6% decrease from March), according to Statistics Canada, of which some include both industries. They employ 150,000 Canadians, with steel production centred in Hamilton, Ontario, and aluminum in Quebec.

A CBC News report predicts 17,700 job losses this year in the metal industry.