Canada Threatens to Impose Tariffs on US Steel and Aluminum Imports

Canada has threatened to escalate its tariff action against the United States, announcing that it is considering imposing additional tariffs on US steel and aluminum imports starting next month, amid stalled trade talks between the two countries. The United States currently imposes 50% tariffs on foreign steel and aluminum imports, while Canada retaliates with 25% tariffs on US-made goods. The two sides are seeking to reach an agreement before mid-July. In an official statement issued Thursday, the Canadian government announced that it will review and adjust the current tariffs imposed on US products on July 21. Canadian Prime Minister Mark Carney affirmed his country's commitment to dialogue, but stressed the need to protect Canadian workers and industries from US tariffs, which he described as "unfair." Within this framework, the Canadian government announced that it would implement new rules requiring federal projects to use domestic steel and aluminum or those imported from countries with which Canada has reciprocal trade agreements. This government move was positively reflected in the market, with shares of Canadian company Algoma Steel Group rising 7.9% on the Toronto Stock Exchange.