June 5, 2025 — Ottawa/Mexico City — Leaders of Canada and Mexico have strongly condemned former U.S. President Donald Trump’s decision to hike tariffs on imported steel and aluminum, calling the move “unjustified” and warning of potential economic retaliation if the measures are not reversed.

The controversial decision has reignited trade tensions across North America, with both Canadian Prime Minister Mark Carney and Mexican President Claudia Sheinbaum voicing sharp opposition to the tariff increases during press conferences on Wednesday.

Prime Minister Mark Carney: “Bad for Everyone”

Canadian Prime Minister Mark Carney criticized the Trump administration’s tariff hikes, describing them as “illegal” and economically damaging not only to Canada but also to the U.S. itself.

“They’re unjustified. They’re illegal. They’re bad for American workers, bad for American industry and, of course, for Canadian industry,” Carney said during remarks to reporters in Ottawa.

Carney, who has consistently advocated for fair and open trade between the U.S. and its North American partners, warned that the tariff increases could strain critical cross-border supply chains and threaten jobs in both countries.

Mexican President Claudia Sheinbaum: “Protecting Our Industry and Our Jobs”

Mexican President Claudia Sheinbaum also responded strongly to the tariffs, stating that her administration would not hesitate to take countermeasures if the Trump team refuses to roll back the policy.

“This isn’t about an eye for an eye, but rather about protecting our industry and our jobs,” she told reporters in Mexico City.

While Sheinbaum did not outline specific actions, she made it clear that Mexico would explore all diplomatic and economic tools available to defend its steel and aluminum sectors, which stand to suffer major losses under the new U.S. tariff regime.

Background: Trump Administration Revives Trade War Tactics

The new tariffs, part of Trump’s revived “America First” trade agenda, represent a return to the hardline trade policies that characterized his first term. The original steel and aluminum tariffs, imposed under Section 232 of the Trade Expansion Act, were justified on national security grounds — a claim heavily disputed by U.S. allies and global trade experts.

Analysts say the new round of tariff hikes could escalate into a North American trade dispute, potentially disrupting the United States–Mexico–Canada Agreement (USMCA) and setting back years of economic integration.

Industry Leaders Sound the Alarm

Industry associations across North America have echoed concerns raised by government leaders. The Canadian Steel Producers Association and Mexico’s National Chamber of the Iron and Steel Industry (CANACERO) both issued statements warning of job losses, increased production costs, and reduced global competitiveness if the tariffs remain in place.

In the U.S., some manufacturers and business groups also expressed frustration, pointing out that higher import costs will hurt downstream industries such as automotive and construction.

What’s Next: Trade Tensions Likely to Escalate

With no sign of immediate compromise from the Trump administration, trade experts expect Canada and Mexico to explore retaliatory tariffs, challenge the U.S. action at the World Trade Organization (WTO), or seek arbitration under the USMCA’s dispute resolution mechanism.

“This decision is a step backward for North American trade relations,” said Sarah Hendricks, an international trade analyst. “Canada and Mexico are likely to coordinate their response to apply maximum pressure for reversal.”

Conclusion: North American Unity Fractured by Tariff Hike

Trump’s decision to increase steel and aluminum tariffs has sparked swift condemnation from North America’s closest allies, with both Canada and Mexico promising strong responses. As trade tensions mount, all eyes are on whether the U.S. will reconsider its stance — or whether the continent is heading for another damaging round of economic confrontation.

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