In a dramatic escalation of the ongoing trade war, Canada has announced a sweeping cut in steel exports to the United States, a move that has sent shockwaves through American industries and left President Trump fuming. Just moments ago, Prime Minister Mark Carney revealed a new tariff rate quota that will impose a staggering 50% surcharge on steel shipments exceeding 2024 volumes, effectively slamming the export valve shut in retaliation for Trump’s recent decision to double metal tariffs to 50%.

This bold maneuver threatens to rip a massive $12 billion hole through Detroit’s assembly lines, where American automakers, already reeling from spiraling costs, now face a supply crisis that could cripple production. With Canada supplying a quarter of the steel consumed in the U.S., the sudden disappearance of this critical resource has sent prices soaring. Hot rolled coil prices surged 6% to $910 a short ton, marking the steepest one-day rise of the year.

The implications are dire: General Motors has slashed its profit outlook by $5 billion for 2025, while construction projects, including Biden’s bridge program, face potential delays and ballooning costs due to the steel shortage. The stakes are high, as Ottawa’s strategy not only aims to protect domestic mills but also positions Canada as a leader in green steel production, with plans to invest $1 billion to expand clean steel capacity.

As tensions mount, the question looms large: Can Trump’s America First policy withstand the pressure of Canada’s retaliatory measures? With each passing moment, the trade war intensifies, threatening to boomerang back on the very American workers Trump vowed to protect. The clock is ticking, and the next move could reshape the North American supply chain forever. Will Washington respond, or will Canada seize the opportunity to redefine the rules of trade? The battle lines are drawn, and the outcome remains uncertain as both nations brace for the fallout.