Canada waits to see if Trump will follow through on steel and aluminum tariff threat
Canada’s steel and aluminum industries are once again on high alert as U.S. President Donald Trump has threatened to impose a 25 per cent tariff on imports. In a statement made on his way to the Super Bowl, Trump declared that the tariffs would apply to all steel and aluminum entering the United States.
The news has left Canadian officials and industry leaders anxiously awaiting the formal announcement of the executive orders, scheduled for 5:30 p.m. ET on Monday. Catherine Cobden, head of the Canadian Steel Producers Association, has warned that these tariffs would have a significant impact on various industries, from energy to construction.
With Canada being a major supplier of steel to the U.S., representing about 20 per cent of their imports, the potential tariffs could have devastating effects on both sides of the border. Industry Minister François-Philippe Champagne has pledged to stand up for Canada, its workers, and industries, emphasizing the vital role that Canadian steel and aluminum play in supporting key U.S. sectors like defense, shipbuilding, and auto manufacturing.
Opposition parties have been quick to call for retaliatory measures if Trump follows through with the tariffs. Conservative Leader Pierre Poilievre proposed using the proceeds from such measures to support the affected industries, with any surplus going towards tax relief for Canadians. NDP Leader Jagmeet Singh went a step further, suggesting imposing 100 per cent tariffs on products from electric vehicle manufacturer Tesla, whose CEO Elon Musk is a top advisor to Trump.
This latest threat of tariffs is just one in a series of trade disputes between the U.S. and its allies, including Canada and Mexico. Trump has previously targeted Canadian goods and oil with tariffs, citing border security concerns. However, after presenting updated border security plans, Canada and Mexico were granted a reprieve from the tariffs.
This is not the first time Canada’s steel and aluminum industries have been in Trump’s crosshairs. In 2018, he imposed tariffs on these products, which led to a retaliatory response from Canada in the form of counter-tariffs on American goods. A deal was eventually reached in 2019 to prevent further trade disputes, but the current threat has reignited tensions between the two countries.
As the situation unfolds, Canadian officials are preparing to respond decisively to protect their industries and workers from the potential impact of these tariffs. The uncertainty surrounding the outcome of Trump’s executive orders has put the Canadian steel and aluminum sectors on edge, with stakeholders closely monitoring developments out of the White House.
