1. Canada Prepares to Retaliate Against U.S. Aluminum and Steel Tariffs

HANOI, June 30, 2025 – The global aluminum and steel markets are closely watching the latest developments from Canada, as the country prepares to announce countermeasures against U.S. goods. According to the plan, the retaliatory tariffs will be announced on July 21, a move that could reshape the metal supply chain in North America.

2. The Cause of the Trade Tension

This action by Canada is a direct and predictable response after the U.S. administration decided to double the Section 232 tariffs to 50% on imported steel and aluminum products, effective from the beginning of June 2025. The U.S. decision, citing national security reasons, has sent a major shockwave to its closest trading partners, especially Canada – the largest supplier of aluminum and steel to the U.S. market.

Canadian Prime Minister Mark Carney stated that the retaliatory measures will be carefully considered and will heavily depend on the outcome of ongoing trade negotiations with the U.S. administration. However, analysts believe that an escalation in the tariff war is almost inevitable.

3. Immediate Impact on the Global Market

The impact of this trade dispute has already extended beyond the borders of the two countries. The U.S. decision has created a "two-tiered market," causing the physical delivery premium for aluminum in the U.S. to soar to record highs, significantly above prices in Europe and Asia. This forces global trade flows to adjust, creating uncertainty and increasing costs for businesses throughout the supply chain.

4. Implications for Vietnamese Steel and Aluminum Businesses

For businesses in the steel and aluminum sectors in Vietnam, including those dealing with products like aluminum sheets and coils, these developments must be closely monitored. Any disruption in the North American supply chain will have ripple effects on prices and supply in the global market. Increased instability could lead to sharp price volatility and shifts in the import-export structure of metals across regions.

5. What to Expect Next

All stakeholders are now awaiting the official announcement from the Canadian government on July 21. This decision will be a critical indicator for the future of North American trade relations and the stability of the global metal market in the second half of 2025.