2LT International News

OTTAWA, Canada: Canada may boost its counter-tariffs on steel and aluminum imported from the U.S. if a comprehensive trade agreement with President Donald Trump is not finalized within the next 30 days, Prime Minister Mark Carney announced this week.

Earlier this month, Trump raised import duties on these metals from 25 percent to 50 percent, prompting the industry to call for Canada to respond officially. This decision could negatively impact Canada, the largest supplier of steel and aluminum to the U.S.

Carney stated that he had reached a mutual agreement with Trump to aim for a new economic and security deal by July 21. He emphasized that, based on the progress achieved in the trade negotiations, Canada would modify its existing counter-tariffs on U.S. steel and aluminum products by that date.

While Carney did not immediately respond to Trump’s recent tariff increase, he expressed the desire to see advancements in talks focused on establishing a stronger economic and security alliance.

Earlier this year, on March 13, Canada enacted 25 percent retaliatory tariffs on steel products worth C$12.6 billion and aluminum products worth C$3 billion.

Furthermore, Canada is introducing new procurement policies that allow Canadian producers and trading partners with tariff-free access to compete for federal contracts involving steel and aluminum.

Carney also indicated that Canada intends to create new tariff-rate quotas equal to 100 percent of 2024 levels for steel imported from nations without free trade agreements, aiming to stabilize the domestic market and prevent detrimental trade shifts.

Approximately 90 percent of Canada’s steel and aluminum exports go to the U.S., while Canada consumes about 20 percent of U.S. steel exports and 50 percent of U.S. aluminum exports, according to the Royal Bank of Canada, underscoring the importance of this trade relationship.

Under Carney’s leadership, Canada is advancing numerous infrastructure projects, including those related to defense and housing, which will significantly increase the demand for steel and aluminum.

“We are committed to supporting the industry by prioritizing Canadian steel and aluminum in federal projects,” Carney stated during a press conference.

C$1 = US$0.73