In the short term, Canada needs to manage foreign trade threats with dollar-for-dollar tariffs and support for our critical steel and aluminium workers.
President Trump’s latest trade tariff is a 25% across-the-board tariff on all steel and aluminum imports.
Recap: Tariffs have rapidly become Trump’s trade move of choice since retaking office three weeks ago. Since returning to power, he’s imposed a 10% tariff on all goods from China, proposed and paused 25% tariffs on Canada and Mexico (currently suspended until next month), and announced further reciprocal tariffs affecting other trading partners are imminent.
Canadian counteraction: The moves will inevitably trigger further tit-for-tat geo-political moves, raising the temperature on the potential for a full-on trade wars. Mark Carney, the frontrunner to replace Justin Trudeau as Canada’s next Prime Minister, was quick to confirm as much after they latest steel and aluminum move.
“In the short term, Canada needs to manage foreign trade threats with dollar-for-dollar tariffs and support for our critical steel and aluminum workers,” Carney said on X.
Targeting China: While Canada is the largest exporter of steel to the U.S., the latest move is seen as another swipe at China. While that country already has a 25% steel tariff (imposed by Trump in 2018), the White House believes the new global edict will close a loophole that has allowed Chinese steel to arrive in the U.S. indirectly through intermediary countries.
In other steel news: Meanwhile, as the President continues on his quest to “make America rich again” with a plan to boost domestic manufacturing through measures such as boosting domestic steel usage, he’s signaled that local producer U.S. Steel will receive an investment from, but not be purchased by Japan’s Nippon Steel.
