🌎Canada invokes CUSMA retaliation clause with $51 billion tariffs
Environment
Trade & Commerce
Canada implemented retaliatory 25% tariffs on $51 billion worth of U.S. goods March 13, 2025, responding to Trump's border security tariffs while testing first-ever carbon-intensity trade penalties targeting American steel, aluminum, and cement producers who refuse emissions reporting.
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Key Takeaways
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Why This Matters
🌍 Trade Tension: First climate-based tariff against the U.S.
Carbon border adjustments represent new trade war strategies that target American emissions policies and industrial exports.
📈 Economic Signal: Industries brace for competitive shifts
Climate tariffs create competitive disadvantages for high-carbon American products while rewarding cleaner foreign competitors.
🤝 Diplomacy: Pushes Washington toward new negotiations
Trade pressure forces climate policy discussions and potential changes to American environmental regulations.
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Detailed Content
1
Canada's carbon-border tariff initially charges what CAD amount per metric tonne of embedded CO₂?
Multiple Choice
Trade Policy
2
Which U.S. governor pledged to challenge the tariff at the WTO within 30 days?
Multiple Choice
International Relations
3
Phase-in schedule brings the tariff to 100 % coverage by which year?
Multiple Choice
Environmental Policy
4
Parliamentary Budget Office estimates first-year revenue of roughly:
Multiple Choice
Economics
5
Authority comes from amendments to which Act?
Multiple Choice
Law
6
Which EU instrument was cited as precedent for Ottawa's design?
Multiple Choice
Climate Diplomacy
7
The first sectors covered are steel, cement, aluminum and _____.
Multiple Choice
Industry
8
Opponents claim the tariff violates Section 121 of Canada's Constitution—what does it guarantee?
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Constitutional Law
9
Which organization called the tariff ‘‘a chance to fund First Nations climate projects’’?
Multiple Choice
Indigenous Affairs
10
11
What share of Canada's imported steel came from the U.S. in 2024, per Statistics Canada?
Multiple Choice
Statistics
12
Alberta Premier Danielle Smith called the tariff ‘‘economic ____.’’
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Energy
13
Rhodium Group estimated the levy cuts U.S. export profits by:
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Analysts
14
Unlike the EU CBAM, Canada's plan rebated 100 % of tariff revenue to:
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Comparative Policy
15
Canada last imposed a border carbon adjustment experiment in which year?
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History