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Canada’s Prime Minister Mark Carney is taking decisive action to combat the oversupply of steel and aluminium imports, particularly in response to the escalating global tariff war over these crucial industrial inputs.
Carney announced on Thursday that Canada will be imposing 100 per cent tariffs on non-US steel and aluminium imports. Additionally, on July 21, they plan to “adjust” their existing 25 per cent counter-tariffs on these metals imported from the US following discussions with Washington. This move comes in the wake of US President Donald Trump’s recent decision to double tariffs on Canadian steel and aluminium, a move Carney described as “catastrophic”.
François-Philippe Champagne, Canada’s finance minister, explained that these measures are being implemented to stabilize the domestic market and prevent any harmful trade diversion resulting from the destabilizing actions of the US.
Carney emphasized the need to protect the Canadian steel industry from being flooded by imports from other countries, particularly China. It is worth noting that Canada already has a 25 per cent surtax on steel and aluminium imports from China.
In addition to the tariffs, Ottawa will also begin purchasing Canadian steel and aluminium for use in domestic infrastructure projects, defense spending, and the automotive industry. Carney stated, “Steel and aluminium workers are on the frontline of this trade crisis, these are the workers who will help us build one strong Canadian economy.”
During the G7 summit in Kananaskis, Alberta, Carney met with Trump to discuss a new economic and security partnership. They agreed to pursue negotiations towards a deal within the next 30 days.
Trump’s decision to impose 50 per cent tariffs on steel and aluminium imports to the US has had a significant impact on Canada, as it is the largest supplier of these metals to the US. The Canadian steel sector is a C$15bn (US$11bn) industry that employs 23,000 people and supports an additional 100,000 indirect jobs, according to the Canadian Steel Producers Association.
Carney assured that he is in frequent communication with Trump on various issues, and these latest measures are necessary to support the steel industry while negotiations for a new trade deal with the White House continue.
Catherine Cobden, president of the CPSA, expressed concern over the impact of the tariffs, stating that while a 25 per cent tariff is challenging, a 50 per cent one would be catastrophic.
This move by Canada demonstrates their commitment to protecting their domestic industries and ensuring a level playing field in the global trade landscape.
