Canada to Impose New Counter-Tariffs in 30 Days if Trade Deal Not Reached with US

Strategic Insights -

Canadian Prime Minister Mark Carney announced a new wave of counter-tariffs on US steel and aluminum products, pending a trade deal with the US within 30 days. The move, aimed at protecting Canadian industries from unjust US tariffs, comes as negotiations between Carney and US President Donald Trump continue to stall. While Carney expressed optimism about reaching a deal, he also acknowledged public doubts about meeting his goal of immediate tariff relief.

During a press conference in Ottawa, Carney revealed a suite of new countermeasures, including adjusting existing counter-tariffs on US steel and aluminum products on July 21. The move will reinforce Canada's strength at home and safeguard workers and businesses from the U.S. tariffs. However, the Canadian Steel Producers Association and the United Steelworkers Union responded negatively, stating that the government's plan falls short of what the industry needs during this challenging time.

The US initially imposed a 25% tariff on imports of steel and aluminum in March, followed by a doubling to 50% by Trump. Canada had initially matched the 25% tariff, but chose not to immediately follow the doubling. The Canadian government has authorized counter-tariff exemptions known as remissions, worth about $8 billion, which has allowed Canadian importers of US steel and aluminum to avoid tariffs. However, Canadian steel producers argue that this gives their American competitors an unfair advantage in the domestic market.

Key Takeaways:

  • Canadian Prime Minister Mark Carney announced a new wave of counter-tariffs on US steel and aluminum products, pending a trade deal with the US within 30 days.
  • The countermeasures include adjusting existing counter-tariffs on US steel and aluminum products on July 21.
  • The Canadian Steel Producers Association and the United Steelworkers Union responded negatively to the government's plan.
  • Washington Post (Washington Post - June 2018)

Statistics:

  • $8 billion: estimated value of counter-tariff exemptions authorized by the Canadian government (as mentioned in the article)
  • 30 days: timeframe for Canada to reach a trade deal with the US (as mentioned by Prime Minister Carney)

Sources:

  • Tonda MacCharles, Toronto Star
  • Mark Carney's statement to reporters (Toronto Star - June 2019)