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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 newest tariff transfer 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 companion.
Canada is the biggest provider of metal and aluminium to the US, accounting for almost 1 / 4 of US metal imports in 2023 and about half of aluminium imports final 12 months.
“A 25 per cent tariff is difficult, but a 50 per cent one is catastrophic,” stated 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 response to the CSPA.
“Steel tariffs at this level will create mass disruption and negative consequences across our highly integrated steel supply chains and customers on both sides of the border,” stated Cobden.
As newly elected prime minister, Carney went to the Oval Workplace in early Might hoping to reset relations broken by Trump’s threats to annex Canada and hit it with 25 per cent tariffs.
The 2 leaders stated 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 12 months.
However on Friday, Trump advised 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 conflict.
Cobden stated Trump’s new risk “essentially closes the US market” to Canada and can “have unrecoverable consequences”.
The Aluminium Affiliation of Canada stated they had been ready for “clearer and more formal legal confirmation” earlier than commenting on the potential implications.
Worldwide commerce minister Dominic LeBlanc stated Canada remained “resolute” in defending its employees and communities.
“As we negotiate a new economic and security relationship with the US, Canada’s new government will stand strong to get the best deal for Canadians,” he stated in a publish on social media platform X on Saturday.
The tariff announcement got here in the identical week Trump stated it could price Canada $61bn to be a part of his formidable “Golden Dome” missile defence protect however can be free if Ottawa gave up its sovereignty to turn out to be the 51st US state.
A spokesperson stated Carney “has been clear at every opportunity, including in his conversations with President Trump, that Canada is an independent, sovereign nation, and it will remain 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 publish 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 among 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 trade policy, it’s a direct attack on Canadian industries and workers,” stated Marty Warren, the United Steelworkers’ nationwide director for Canada.
“Thousands of Canadian jobs are on the line, and communities that rely on steel and aluminium are being put at risk. Canada needs to respond immediately and decisively to defend workers.”
Goldy Hyder, president of the Business Council of Canada, stated it was greatest “not to take the bait” from Trump’s statements and keep targeted on a renewal of the USMCA.
“These moving goalposts is just a strategy to try and get Canada to give more,” he stated.
