Canada to hike U.S. steel, aluminum duties July 21 if no deal
Canada-U.S. Minister Dominic LeBlanc, Industry Minister Mélanie Joly, Prime Minister Mark Carney and Finance Minister François-Philippe Champagne, pictured at a press conference on June 19. / TWITTER PHOTO
Prime Minister Mark Carney unveiled a suite of measures Thursday aimed at stabilizing Canada's struggling steel and aluminum industries in the face of aggressive U.S. trade measures.
The new program includes the imposition of a tariff rate quota on foreign steel imports and a potential tax hike on American goods if Canada and the U.S. fail to reach a trade agreement within 30 days of the announcement.
Canadian exports of steel and aluminum have continued to decline, and job losses in the sector mount, largely due to U.S. President Donald Trump’s escalating tariffs.
At a press conference Thursday, Carney confirmed that Canada’s retaliatory tariffs on American steel and aluminum will be reviewed and adjusted based on the outcome of ongoing negotiations with Washington. Tariffs on U.S. steel and aluminum imports will be set at a rate that's “consistent with the progress that's made,” Carney said. “We will review our response as the negotiations progress.”
Pursuing trade deal
The timeline for these adjustments is set for July 21. Earlier this month, Trump raised U.S. tariffs on steel and aluminum to 50%, from 25%. Carney said he initially refrained from matching that spike, choosing instead to wait for the results of current talks.
The announcement follows a meeting between Carney and Trump at the G7 summit in Alberta earlier this week, where both leaders agreed to pursue a trade deal within 30 days. With Thursday's measures, Carney signalled that Canada is prepared to increase its retaliatory tariffs further if no agreement is reached.
One of the key measures introduced Thursday is the establishment of a tariff rate quota on foreign steel. Under this system, a limited quantity of foreign steel will be permitted to enter Canada tariff-free. Imports beyond that threshold will be subject to high tariffs, making them significantly more expensive.
The policy is intended to bolster the competitiveness of Canadian steel and support domestic producers who have been impacted by the U.S. trade measures.
“We must reinforce our strength at home and safeguard Canadian workers and businesses from the unjust U.S. tariffs that exist at present,” Carney said.
