Canada is taking steps to protect its steel and aluminium industries with new counter-tariffs and protectionist policies, Prime Minister Mark Carney said on Thursday.
At a press conference, Trudeau noted that he and US President Donald Trump had agreed to conclude a trade deal to end tariffs within the next 30 days.
“At the same time, we must strengthen our domestic capacity and protect Canadian workers and businesses from unfair US tariffs,” he said.
In March, Trump imposed 25% tariffs on all steel and aluminium imports, and earlier this month raised them to 50%. In response, Canada imposed 25% counter-tariffs on US steel and aluminium products in March.
Carney said on Thursday that on July 21, when the 30-day negotiation period ends, these counter-tariffs will be adjusted “to a level consistent with progress made in a broader trade agreement with the US.”
Ottawa is also introducing rules on June 30 that will limit federal purchases of steel and aluminium from Canada and “reliable trading partners.”
Steel and aluminium issue
US tariffs on steel and aluminium apply worldwide, not just to Canada, raising concerns about dumping.
Canada will set new tariff quotas at 100% of 2024 levels on steel imports from partners in the non-free trade agreement, according to a government press release.
Carney said the new tariffs would be introduced in the coming weeks to protect Canadian industry from unfair trade practices and excess production capacity. Carney also announced the creation of two separate task forces on steel and aluminium, which will meet to monitor the situation and advise the government.
Leaders of the Canadian Steel Manufacturers’ Association and the United Steelworkers visited Parliament Hill on Thursday to urge the federal government to take urgent action.
Industry Minister Melanie Joly said that Canada’s steel and aluminium industries were in a state of emergency because of the US tariffs.
