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Canada’s metal trade warned of “catastrophic” job losses, manufacturing unit slowdowns and provide chain disruption after US President Donald Trump doubled tariffs on imports to 50 per cent.
Trump’s latest tariff move sparked anger throughout the border, as Canada’s Prime Minister Mark Carney had solely final month travelled to the White Home to restore relations frayed after Washington imposed heavy levies on its greatest buying and selling associate.
Canada is the most important provider of metal and aluminium to the US, accounting for practically 1 / 4 of US metal imports in 2023 and about half of aluminium imports final yr.
“A 25 per cent tariff is tough, however a 50 per cent one is catastrophic,” mentioned Catherine Cobden, president of the Canadian Metal Producers Affiliation.
Metal is a C$15bn (US$11bn) trade that employs 23,000 Canadians and helps a further 100,000 oblique jobs, in accordance with the CSPA.
“Metal tariffs at this degree will create mass disruption and unfavourable penalties throughout our extremely built-in metal provide chains and clients on each side of the border,” mentioned Cobden.
As newly elected prime minister, Carney went to the Oval Workplace in early Could hoping to reset relations broken by Trump’s threats to annex Canada and hit it with 25 per cent tariffs.
The 2 leaders mentioned they had been open to renegotiating the US-Mexico-Canada Settlement, a commerce deal that succeeded the North American Free Commerce Settlement throughout Trump’s first time period and is up for evaluate subsequent yr.
However on Friday, Trump instructed a rally in West Mifflin, Pennsylvania, that he would double metal and aluminium tariffs to 50 per cent, in an escalation of his international commerce battle.
Cobden mentioned Trump’s new risk “basically closes the US market” to Canada and can “have unrecoverable penalties”.
The Aluminium Affiliation of Canada mentioned they had been ready for “clearer and extra formal authorized affirmation” earlier than commenting on the potential implications.
Worldwide commerce minister Dominic LeBlanc mentioned Canada remained “resolute” in defending its staff and communities.
“As we negotiate a brand new financial and safety relationship with the US, Canada’s new authorities will stand sturdy to get the perfect deal for Canadians,” he mentioned in a put up on social media platform X on Saturday.
The tariff announcement got here in the identical week Trump mentioned it will value Canada $61bn to be a part of his bold “Golden Dome” missile defence shield however could be free if Ottawa gave up its sovereignty to turn into the 51st US state.
A spokesperson mentioned Carney “has been clear at each alternative, together with in his conversations with President Trump, that Canada is an impartial, sovereign nation, and it’ll stay one”.
The US president unveiled the elevated levies on Friday as he touted a $15bn partnership between Nippon Metal and US Metal at a rally in Pennsylvania, promising to erect a tariff “fence” round home metals manufacturing.
The brand new levies will come into impact on Wednesday, the president wrote in a Reality Social put up following the occasion.
Earlier within the week, a US federal appeals courtroom paused a ruling that deemed Trump’s “liberation day” tariffs unlawful.
Canada has introduced “a dollar-for-dollar” response to the US tariffs that may have an effect on metal merchandise price C$12.6bn, aluminium merchandise price C$3bn and extra US items price C$14.2bn.
These tariffs launched in March are on prime of preliminary retaliatory levies on C$30bn of US items. However in mid-April, Canada quietly softened its stance by easing a few of the countermeasures on US carmakers and producers.
Canada’s ministers and provincial leaders are assembly in Saskatoon, Saskatchewan province, on Monday as a part of Carney’s efforts to diversify the financial system away from over-reliance on the US.
“This isn’t commerce coverage, it’s a direct assault on Canadian industries and staff,” mentioned Marty Warren, the United Steelworkers’ nationwide director for Canada.
“Hundreds of Canadian jobs are on the road, and communities that depend on metal and aluminium are being put in danger. Canada wants to reply instantly and decisively to defend staff.”
Goldy Hyder, president of the Enterprise Council of Canada, mentioned it was greatest “to not take the bait” from Trump’s statements and keep centered on a renewal of the USMCA.
“These transferring goalposts is only a technique to try to get Canada to offer extra,” he mentioned.
