How has Canada responded to Trump's tariff hike on steel and aluminum?

1 month_ago 15

Business

Prime Minister Mark Carney has called Tuesday's doubling of alloy and aluminum tariffs by U.S. President Donald Trump "unjustified" and pledged to respond, but what that effect mightiness look similar isn't wide yet, with officials batting down the thought of contiguous counter-tariffs.  

Retaliatory tariffs aren't coming close now, Industry Minister Melanie Joly says

A idiosyncratic    is shown successful  a bluish  outfit and bluish  hardhat walking on  a pathway with yellowish  railings successful  a factory. The connection     "ALGOMA" is disposable   connected  a ample  bluish  instrumentality   successful  the background.

Machinery and workers are seen astatine Algoma Steel Inc., successful Sault Ste. Marie, Ont., successful April. The alloy manufacture is mostly based successful Ontario. After the U.S. doubled tariffs connected alloy and aluminum, unit connected the national authorities mounted to respond. (Sean Kilpatrick/The Canadian Press)

Prime Minister Mark Carney has called Tuesday's doubling of alloy and aluminum tariffs by U.S. President Donald Trump "unjustified" and pledged to respond, but what that effect mightiness look similar isn't wide yet, with officials batting down the thought of contiguous counter-tariffs.  

Trump's order expanding the 25 per cent tariff connected alloy and aluminum announced successful February to 50 per cent came into effect astatine midnight Tuesday, and some manufacture experts and politicians, including Ontario Premier Doug Ford, instantly called for swift retaliatory tariffs. 

So far, the national authorities hasn't said what retaliatory measures Canada mightiness use, but Industry Minister Mélanie Joly indicated Wednesday day that the authorities won't beryllium announcing matching tariffs on U.S. goods astatine the moment. 

What is the national effect truthful far?

Carney called the caller tariffs "unjustified" and "illegal" successful a remark to reporters Wednesday greeting up of the regular Liberal caucus gathering but did not reveal any caller authorities actions. 

"They're atrocious for American workers, they're atrocious for American industry, and, of course, for Canadian manufacture arsenic well," helium said. 

He said his authorities would instrumentality "some time" to formulate a response. "Not overmuch — due to the fact that we are successful intensive discussions close present with the Americans connected the trading relationship," Carney said. 

"I would enactment that the American enactment is simply a planetary action; it's not 1 targeted astatine Canada."

WATCH: Prime Minister Mark Carney speaks connected tariffs up of caucus meeting: 

Carney responds to U.S. aluminum and alloy tariffs doubling

Ahead of a Liberal caucus meeting, Prime Minister Mark Carney said the authorities is successful ‘intensive discussions’ with the United States aft tariffs connected alloy and aluminum accrued from 25 to 50 per cent.

Joly echoed these sentiments Wednesday day successful an update that didn't connection galore specifics connected what the authorities is planning. 

"We cognize that radical are anxious," she said. 

The authorities is continuing negotiations with the U.S., she said, emphasizing the request for Canada to make a beardown home marketplace for alloy and aluminum done "major infrastructure projects" to spur jobs creation. 

When asked if counter-tariffs were being considered, she pointed to Canada's erstwhile measures, which see a 25 per cent tariff connected $30 cardinal worthy of U.S. goods. 

"We person had truly beardown counter-tariffs against the Americans already," she said. "We are looking astatine antithetic scenarios close now, and we volition instrumentality a decision, but we request a small much clip close now."

Finance Minister François-Phillipe Champagne, speaking Wednesday anterior to the caucus meeting, said that the government's precedence was "to combat against these tariffs" but besides did not supply specifics. 

Canada-U.S. Trade Minister Dominic LeBlanc was successful Washington, D.C., connected Tuesday for a gathering with U.S. Commerce Secretary Howard Lutnick. Afterward, helium described the gathering arsenic "a affirmative conversation" but did not corroborate if an exemption for Canada was successful the cards.

During a fiery question play successful the House of Commons, members of the Conservative party and Bloc Québécois slammed the national authorities for its response, calling for much specifics successful however the authorities is readying to enactment the manufacture successful airy of these tariffs. 

WATCH: Finance Minister says the authorities volition combat against tariffs: 

Finance curate responds to U.S. tariff increases

Before a Liberal caucus meeting, Finance Minister François-Philippe Champagne said the government’s precedence is to ‘fight against’ tariffs and support workers and manufacture aft U.S. President Donald Trump accrued tariffs connected aluminum and alloy from 25 to 50 per cent.

Ontario Premier Doug Ford, meanwhile, called for the national authorities to respond instantly and spot an further 25 per cent tariff connected U.S. alloy coming into Canada. 

"We can't beryllium backmost and fto President Trump steamroll us," helium said Wednesday. 

He said helium would beryllium looking astatine however to guarantee that manufacturers successful Ontario, wherever Canada's alloy manufacture is concentrated, are utilizing arsenic overmuch home alloy arsenic possible.

"We person to usage Ontario steel, Canadian steel, astatine each costs," helium said. 

When asked if helium would see placing a surcharge connected energy exports to the U.S. again, which helium concisely threatened to bash successful March, helium didn't regularisation it out. "Everything's connected the array close now."

How is the alloy and aluminum manufacture reacting? 

Catherine Cobden, CEO of the Canadian Steel Producers Association, told CBC News connected Tuesday that a 50 per cent tariff means that the U.S. marketplace is de facto "completely closed" to Canadian steel.

She said she is expecting to spot much occupation losses connected apical of the ones already underway in the aftermath of the archetypal 25 per cent tariff. Canada is the apical exporter of alloy and aluminum to the U.S. 

Some companies interest that the further tariff hike volition paralyze suppliers and customers while others accidental they person immoderate wiggle country to set for now. 

Keanin Loomis, president and CEO of the Canadian Institute of Steel Construction, said that Canada needs to "forcefully respond," to these further tariffs. 

He's calling for much retaliatory tariffs to beryllium added to goods entering from the United States but cautioned that this should beryllium done cautiously to minimize blowback connected Canadian businesses. 

WATCH: U.S. places further tariffs connected alloy and aluminum: 

Trump signs bid to hike steel, aluminum tariffs to 50%

U.S. President Donald Trump has signed a proclamation to officially summation alloy and aluminum tariffs to 50 per cent, up from the antecedently announced 25 per cent tariffs. Despite different circular of talks betwixt Canadian officials and their U.S. counterparts, Canada is not exempt from the tariff hike.

This was echoed by François Racine, CEO of the manufacture radical AluQuebec, who told CBC News Network that countermeasures targeting finished goods and products made successful the U.S. is thing helium supports, but that placing tariffs connected components and cardinal products that Canadian manufacturers request won't assistance those businesses. 

In a associated property league betwixt labour, concern and municipal leaders, Candace Laing, president and CEO of the Canadian Chamber of Commerce, endorsed the usage of "targeted counter-tariffs," noting the request to support Canadian industries that mightiness trust connected definite imports.

Bea Burke, president of the Canadian Labour Congress (CLC), urged the authorities successful the property conference to enactment with "strength and with purpose" during this commercialized war. She said the CLC, which represents the bulk of unions crossed Canada, is calling for emergency reforms to employment security to enactment workers who suffer their jobs, made-in-Canada taxation credits to incentivize Canadian sourcing, and a "firm committedness to usage Canadian-made alloy successful each nationalist infrastructure."

How did the Bank of Canada react? 

Tiff Macklem, politician of the Bank of Canada, announced connected Wednesday that the cardinal slope would beryllium holding its cardinal involvement complaint dependable astatine 2.75, "as we proceed to summation much accusation connected U.S. commercialized argumentation and its impacts."

He called the commercialized warfare "the biggest headwind facing the Canadian economy" and noted that portion the system has shown immoderate resilience successful the look of tariffs and countermeasures if the commercialized rift is not resolved, the impacts volition get worse.  

"The longer these tariffs spell on, the much this uncertainty goes on, the much this is going to measurement connected the Canadian economy."

ABOUT THE AUTHOR

Alexandra Mae Jones is simply a elder writer for CBC News based successful Toronto. She has written connected a assortment of topics, from wellness to popular civilization to breaking news, and antecedently reported for CTV News and the Toronto Star. She joined CBC successful 2024. You tin scope her astatine [email protected]

    With files from CBC News' Jenna Benchetrit

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