Canada threatens to impose counter tariffs on US steel, aluminum
No trade deal by July 21 deadline will set tariffs in motion
TRENTON, Canada
Canada will impose a quota and proposed tax hike on US steel and aluminum if a trade deal can’t be reached by July 21, Prime Minister Mark Carney announced Thursday at a news conference.
Carney said he is instituting a new federal program, including a tariff rate quota. It allows some steel imports from countries that have signed trade agreements with Canada, but anything above that limit will be hit with a high tariff.
The idea is to make Canadian steel manufacturers, already reeling from the 50% tariff instituted by US President Donald Trump, more attractive to use and the imports too high to buy.
"We must reinforce our strength at home and safeguard Canadian workers and businesses from the unjust US tariffs that exist at present," Carney told reporters at the new conference on Parliament Hill in Ottawa.
Counter tariffs on US steel and aluminum would remain in flux – up or down depending on the Canada-US trade talks, Carney said.
At the G7 Summit this week, Carney and Trump agreed to hammer out a trade deal within 30 days.
A new bill, C-5, if passed would give the Canadian government the ability to fast track so-called nation building projects requiring large amounts of steel and aluminum.
"We, as Canadians, can give ourselves far more than the Americans can ever take away. Steel and aluminum workers are on the front lines of this trade war. These workers will help us build one strong Canadian economy -- the strongest economy in the G7," Carney said.
