Canada will extend its 25% counter-tariffs on American steel and aluminum by July 21 if a new trade agreement is not signed, Prime Minister Mark Carney said Thursday. It follows Washington’s move to double tariffs on Canadian metal imports.
“Canada will modify its current counter-tariffs on American steel and aluminum products on July 21, at the conclusion of that 30-day window,” Carney announced during a press conference.
Carney also announced measures of support for Canada’s steel and aluminum industries in an effort to protect them from the effects of the 50% US tariffs. These consist of new procurement policies that prefer domestic producers and more Corrosive anti-dumping regulations.
Having exported the most steel and aluminium to the US, Canada has been severely impacted by the hike in tariffs. Carney earlier this month denounced US tariffs as “illegal” and “unjustified,” leading both nations to engage in “intensive discussions” to re-establish their trade relationship.
The negotiations are the follow-up to a meeting between Carney and US President Donald Trump on the fringes of the recent G7 leaders’ summit in Canada, where leaders called on Trump to relax trade tensions. A deal can be agreed within 30 days if the talks progress well, Canadian officials say.
Carney emphasized that any successful deal must guarantee stable trade relations with the US while keeping Canada’s hand free to participate freely in international trade. “A good outcome would stabilise the trading relationship with the United States and maintain open access to their markets, without limiting our global trade options,” he stated.
Canada last year shipped 5.95 million tonnes of steel and 3.15 million tonnes of aluminum into the US, American government statistics reveal. As the clock ticks, the fate of these trade negotiations could have a dramatic impact on North America’s economy.
