In a stunning escalation of the ongoing trade war, Canada has announced a drastic cut in steel exports to the United States, a direct retaliation against President Trump’s recent tariff hike. Prime Minister Mark Carney’s government is slamming the brakes on tariff-free steel imports, effectively choking off a critical supply line that has fueled American industries for years. This move comes just hours after Trump doubled metal tariffs to an eye-watering 50%, sending shockwaves through Detroit’s automotive sector and beyond.

The implications are catastrophic: a staggering $12 billion hole now threatens to rip through Detroit’s assembly lines, endangering jobs and production schedules. Canadian mills, responding to the tariff increase, have halted shipments to the U.S., forcing American manufacturers to scramble for alternative sources of steel. Prices soared immediately, with hot-rolled coil surging 6% to $910 per ton—the steepest one-day jump this year. General Motors has already slashed its profit outlook by $5 billion for 2025, citing spiraling costs.

Carney’s strategy is clear: protect domestic jobs and industries while positioning Canada as a leader in green steel production. With a billion-dollar fund aimed at boosting clean steel capacity, Canada is not just retaliating; it’s rewriting the rules of the game. The U.S. now faces a critical shortage, as Canadian mills accounted for approximately 25% of all steel imports last year.

As the fallout continues, the question looms large: how long can American industries endure this self-inflicted wound? With no immediate resolution in sight, Detroit’s manufacturers are left grappling with soaring costs and dwindling supplies. The stakes are high, and the clock is ticking. Will Washington reconsider its protectionist stance before it’s too late, or will this trade war escalate to a level that reshapes North America’s economic landscape? The answer could redefine the future of both nations. Stay tuned as this story develops.