In a stunning escalation of the ongoing trade war, Canada has announced a drastic cut to steel exports to the United States, igniting fury in the Trump administration. Just moments ago, Prime Minister Mark Carney unveiled a new tariff rate quota that slaps a staggering 50% surcharge on Canadian steel shipments exceeding 2024 volumes, effectively slamming the door on a vital supply chain for American manufacturers.

This bold move comes on the heels of President Trump’s decision to double metal tariffs to 50%, a tactic intended to protect American jobs but now threatening to cripple Detroit’s assembly lines. As of today, a whopping 25% of the steel America imports has vanished overnight, sending shockwaves through industries reliant on Canadian steel. The repercussions are immediate and severe, with General Motors already slashing up to $5 billion from its profit outlook for 2025 due to spiraling costs.

Carney’s government is not merely reacting; it is seizing the opportunity to bolster domestic production and green initiatives. A $1 billion clean steel fund has been established, mandating that at least 60% of steel used in federally backed projects must be sourced from Canadian mills. The stakes are high as construction and automotive sectors scramble to adapt, with potential delays and skyrocketing prices looming.

The urgency of the situation is palpable. With prices for hot-rolled coil already surging 6% following Trump’s tariff announcement, the impact on American consumers is inevitable. As the clock ticks, the question remains: how long can the U.S. withstand this pressure before the supply chain snaps? Ottawa’s strategy could redefine North America’s industrial landscape, leaving Washington scrambling for a solution. The next chapter in this high-stakes trade saga is unfolding now, and its implications will resonate far beyond the borders of Canada and the United States.