As a result, Canada has already announced a comprehensive series of retaliation measures. This answer in response to the United States raising tariffs on steel and aluminum imports. In March, U.S. President Donald Trump slapped a 25 percent across-the-board tariff on all Canadian steel and aluminum imports. Just weeks ago, he made things worse by increasing the tariff rate to 50 percent. This decision caused enough of a stir that it inspired Canadian officials to act.
Even Canada’s Prime Minister Mark Carney last month stressed the need to protect his country’s steel and aluminum industries. He talked about the danger to the industries from different unfair trading practices and the problem of overcapacity. The government responded swiftly by implementing counter-tariffs on U.S. steel and aluminum products in March, signaling its resolve to defend local industries.
As part of these new measures, Canada is moving to implement passenger bill of rights rules that take effect June 30. These proposed regulations will restrict federal procurement to steel and aluminum produced solely in Canada and “countries that are parties to a free trade agreement with the United States.” The shift is intended to increase national production and lower reliance on imported products that face tariff charges.
Carney went on to stress that these measures must be the first step to protecting Canadian workers. He underscored their role in holding up the steel and aluminum industries’ integrity. He used the opportunity to highlight Canada’s commitment to progressive trade. At the same time, he rightly raised the need to ensure Canadian industries can compete in a global market.
In the next few weeks’ time, Canada plans to increase their tariffs in order to protect their steel and aluminum industries even more. These tariffs counteract some of the harmful impact of U.S. tariffs. Instead they have deeply hurt Canadian producers and upended the industry.
These recent trade disputes between Canada and the United States illustrate just how nuanced and complicated international trade relations can be. Neither country can afford to ignore the damage caused by bad protectionist policies. The economic impact would be felt well beyond just steel and aluminum, affecting a variety of industries that rely on these products.
