Canada announced Wednesday that it will impose 25% tariffs on over $20 billion worth of U.S. goods in retaliation for the Trump administration's new steel and aluminum duties, CNBC reported.

What To Know: Canadian Finance Minister Dominic LeBlanc confirmed that the tariffs will take effect Thursday and will target steel, aluminum, computers, sports equipment and cast iron products.

These new measures add to the 25% counter-tariffs Canada placed on $30 billion of U.S. goods earlier in March. Despite Trump issuing temporary exemptions on some tariffs after a market sell-off, Canada has opted to maintain its retaliatory stance. Meanwhile, the European Union also responded by announcing tariffs on $28 billion worth of U.S. goods starting in April.

What Else: The financial and manufacturing sectors are bracing for volatility, as Trump’s tariff policies have already contributed to stock market declines and disrupted global supply chains. U.S. steel and aluminum producers may see short-term gains, but auto manufacturers and consumer goods companies could face higher costs.

Melanie Joly, Canada's foreign affairs minister, emphasized that the tariffs represent a broader defense of national interests, telling reporters, "Canadians have had enough."

While Trump argues that tariffs protect domestic industries and boost revenue, economists warn of rising consumer prices and economic instability.

Among the sectors that will feel the impact of the U.S.’s tariff war with Canada is housing. Canada has been the top supplier of lumber used by home builders in the U.S. for many years.

The National Association of Home Builders (NAHB) recently reiterated its concern that the continued threat of tariffs will make it harder for builders and their customers to move ahead with new construction projects.

“With the nation facing a housing affordability crisis, we continue to believe that critical construction materials should be exempt from any future tariffs. NAHB will continue to work with the administration to cut regulations, boost domestic lumber output and further rein in housing costs so that builders can construct more homes and apartments to meet our nation's housing needs,” the group wrote last week.

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