If trade negotiations with the Trump administration reach a deadlock, Canada will raise tariffs on US steel and aluminum products next month. According to a statement released on Thursday, the Canadian government said: "It will adjust the existing countermeasures tariffs on steel and aluminum products on July 21 to align their levels with the progress made in the broader US trade arrangements."
At present, the United States imposes a 50% tariff on imported steel and aluminum products, while Canada imposes a 25% countermeasures tariff on steel and aluminum products made in the United States. The two countries are currently negotiating a trade agreement, with the initial deadline set for mid-July.
Canadian Prime Minister Mark Carney said at a press conference, "We will certainly continue these negotiations in good faith." Meanwhile, we must strengthen domestic forces to protect Canadian workers and businesses from the current unjust US tariffs.
The statement also said that the Canadian government will introduce new regulations for federal programs, allowing only the use of steel and aluminum products produced in Canada or by "reliable trading partners", who need to provide reciprocal market access through trade agreements.
The Canadian Steel Producers Association and the United SteelWorkers said in a joint statement that the plan "fails to fully meet the needs of our industry during this extremely difficult period." They added: "We will continue to review the specific details of these measures and work constructively with the federal government to strive for a practical support plan for the Canadian steel industry."
Canada will also establish a new tariff quota system to restrict steel imports from countries that have not signed trade agreements with Canada, and plans to introduce new tariff measures in the coming weeks to address the risk of dumping of steel and aluminum products. Carney and his government officials are worried that after the United States imposes a 50% tariff on metal imports, it may lead global manufacturers to shift their products to the Canadian market.
Carney said that these new quotas were not the demands of the US side in the negotiations, but "the consequences of the actions taken by the US." He also specifically mentioned that the Canadian federal government has established a loan program worth 10 billion Canadian dollars to provide liquidity support for large enterprises that have difficulty obtaining financing from traditional markets.
Carney issued the above statement along with Cabinet ministers Dominic LeBlanc and Melanie Joly. Carney said that he spoke with US President Trump "quite frequently". Dominic LeBlanc added that he was in continuous communication with US Commerce Secretary Robert Lutnick and would hold talks with US Trade Representative Jamieson Greer on Friday.
When asked whether Canada would be willing to accept some of the US tariffs to reach an agreement, Carney responded that true free trade is in the common interests of both countries. He said, "This is a negotiation." If it is in the interests of Canada, we will sign. If it doesn't meet the requirements, we won't sign.
