Canada will hike U.S. steel tariffs if it can't make a trade deal next month, Carney says
Prime Minister Mark Carney announced Thursday new measures to help stabilize Canada's steel and aluminum sectors that have been hard hit by U.S. President Donald Trump's tariffs — with exports down and job losses up.
The new federal program includes a quota on foreign steel and a proposed tax hike on U.S. imports if Canada and the U.S. can't reach a trade deal in a month's time.
Carney said Canada's counter-tariffs on U.S. steel and aluminum products would go up — or down, depending on the negotiations with Trump — on July 21.
Trump hiked the U.S. tariff rate on steel and aluminum from 25 per cent to 50 per cent earlier this month and Carney, at the time, withheld matching that rate spike given talks are ongoing to get Canada out from under Trump's tariffs.The two leaders agreed at the G7 summit in Alberta this week to try and reach some sort of trade deal within 30 days. With today's announcement, Carney is signalling he's willing to go higher with Canada's retaliatory tariffs if a deal doesn't come together.
The Canadian tariffs on U.S. steel and aluminum imports will be set at a rate that's "consistent with the progress that's made," Carney said. "We will review our response as the negotiations progress."
Asked by a reporter if he's willing to accept any U.S. tariffs on Canadian goods — Trump reiterated again this week he's a "tariffs person" and didn't seem willing to budge — Carney said the government's position is that Trump should do away with all of his "unjust" trade actions and that's the starting point of these negotiations.
Foreign steel quota coming
Carney said he's establishing a new "tariff rate quota," as it's called in trade parlance, which means some foreign steel imports will be allowed but anything above that limit will be hit with a high tariff, making them more expensive.
The purpose of this measure is to make Canadian steel more competitive and prop up an industry that has lost a lot of its U.S. business amid Trump's punishing tariffs.
The program is designed to induce Canadian companies to use domestic steel by making foreign imports price prohibitive.
"We must reinforce our strength at home and safeguard Canadian workers and businesses from the unjust U.S. tariffs that exist at present," Carney told reporters on Parliament Hill.
WATCH | 'I'm a tariff person,' Trump says at G7 meeting with Carney:
Carney said the government is considering additional tariff measures in the coming days to keep more foreign steel out and address what he called "persistent global overcapacity and unfair trade."
That's in response to industry demands that the federal government tamp down on foreign companies dumping cheap steel in Canada, hurting local suppliers — a phenomenon the sector says has only gotten worse since Trump levied global tariffs on the metal.
Carney said the government's push to get major infrastructure and natural resources projects built quickly will also help the struggling steel sector.
A pending government bill before Parliament, C-5, would give Carney's cabinet the ability to fast-track approvals for "nation-building" projects, many of which would require huge quantities of steel and aluminum during construction.
"We, as Canadians, can give ourselves far more than the Americans can ever take away. Steel and aluminum workers are on the front lines of this trade war. These workers will help us build one, strong Canadian economy — the strongest economy in the G7," Carney said.
The measures come "at the right time" and send "a strong signal towards focused and accelerated negotiations," said Jean Simard, president of the Aluminium Association of Canada, in a statement.
He said that without a "positive" outcome by Carney's deadline, the industry will seek "agility and speed for government interventions."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Wall Street Journal
12 minutes ago
- Wall Street Journal
Fed's Waller Suggests Central Bank Could Cut Rates in July
Federal Reserve governor Christopher Waller said the central bank could be positioned to cut interest rates at its July meeting, notwithstanding potential inflation pressures from tariffs. 'I think we've got room to bring it down, and then we can kind of see what happens with inflation,' Waller told CNBC, saying the Fed should "look through" one-time price rises fueled by levies. 🔎 Read more:
Bloomberg
12 minutes ago
- Bloomberg
Darden Weighs Sale of Bahama Breeze Restaurant Chain
Darden Restaurants Inc. is considering 'strategic alternatives' for its Bahama Breeze chain, Chief Executive Officer Rick Cardenas said. Potential plans for the chain include selling the brand or converting the restaurants to other Darden brands, Cardenas said on an earnings call Friday.
Yahoo
16 minutes ago
- Yahoo
5 Consumer Staples Stocks to Buy as Fed Keeps Interest Rates Unchanged
Geopolitical tensions, a delay in the interest rate cut and uncertainty over the impact of President Donald Trump's tariffs have again made markets volatile. Although consumer confidence rebounded slightly in May after Trump temporarily paused the tariffs, investors remain concerned about the economy's health. Given the uncertainty, it would be ideal to invest in safe-haven defensive stocks from the consumer staples sector such as Philip Morris International Inc. PM, Nomad Foods Limited( NOMD), Altria Group, Inc. MO, The Coca-Cola Company KO and Ingredion Incorporated INGR. Each of these stocks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here. Also, these stocks are from the low-beta category (beta greater than 0 but less than 1). Hence, the recommended approach is to invest in low-beta stocks with a high dividend yield and a favorable Zacks Rank. The Federal Reserve left interest rates unchanged at the end of its June FOMC meeting in the current range of 4.25% to 4.5%. The move was highly expected as Federal Reserve Chairman Jerome Powell reiterated his earlier comments that the central bank will wait and watch the impact of Trump's tariffs on inflation before deciding on resuming rate cuts. Policymakers also lowered their 2025 economic growth forecast to just 1.4% and increased their core inflation outlook to 3.1%. Understandably, the uncertainty over the impact of tariffs has raised concerns among market participants about the economy's future. Although the United States has reached a trade deal with its biggest trading partner, China, it is yet to be seen how the new tariffs will impact the economy. Meanwhile, ongoing geopolitical tensions between Iran and Israel have also raised fears of a full-fledged war. Israel launched missile strikes on Iran last week, targeting its nuclear sites and reportedly eliminating several top scientists. Iran retaliated with a barrage of missile strikes on Israel over the weekend. Although the United States is yet to get directly involved in the conflict, tensions have been escalating, with Trump weighing in on striking Iran. The United States has also been mobilizing its warships and bombers in the Middle East. Washington's involvement in the conflict could further escalate tension. This could keep markets volatile for a longer period. Philip Morris International Inc. is progressing well with its business transformation in the face of consumers' rising health consciousness and stern regulations to dissuade smoking. To this end, PM has been expanding its reduced risk products (RRPs) or smoke-free products category, as evident from the success of IQOS (a heating tobacco device) that counts among one of the leading RRPs in the industry. Philip Morris International has an expected earnings growth rate of 13.7% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3.3% over the past 60 days. PM currently carries a Zacks Rank #2. Philip Morris International has a beta of 0.52 and a current dividend yield of 2.96%. Nomad Foods Limited manufactures and distributes frozen foods primarily in the United Kingdom, Italy, Germany, Sweden, France and Norway. NOMD's portfolio of frozen food brands includes Birds Eye, Iglo and Findus. Nomad Foods Ltd. is headquartered in Feltham, the United Kingdom. Nomad Foods has an expected earnings growth rate of 7.3% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4% over the last 60 days. NOMD presently sports a Zacks Rank #1. Nomad Foods has a beta of 0.75 and a current dividend yield of 3.96%. Altria Group, been evolving with the changing industry dynamics. Given the rising health consciousness and stern government regulations to discourage smoking, MO has been moving beyond traditional cigarettes and expanding in the smokeless category. Altria Group's expected earnings growth rate for the current year is 5.3%. The Zacks Consensus Estimate for its current-year earnings has improved 2.1% over the past 60 days. MO currently has a Zacks Rank #2. Altria Grouphas a beta of 0.60 and a current dividend yield of 6.86%. The Coca-Cola Company's strong brand equity, marketing, research and innovation help it to garner a market share of more than 40% in the non-alcoholic beverage industry. KO is putting its best foot forward to evolve its business model to become a total beverage company with something for everyone to drink. The Coca-Cola Company has coped with the industry-wide flattening of soda sales over the years by going on a buying spree and making investments in healthier alternatives like coffee, sparkling water and sports drinks. The Coca-Cola Company has an expected earnings growth rate of 3.1% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the past 60 days. KO currently carries a Zacks Rank #2. The Coca-Cola Company has a beta of 0.46 and a current dividend yield of 2.95%. Ingredion Incorporated is an ingredients solutions provider specializing in nature-based sweeteners, starches and nutrition ingredients. INGR serves diverse sectors in food, beverage, brewing, pharmaceuticals and other industries. Ingredion's expected earnings growth rate for the current year is 6.1%. The Zacks Consensus Estimate for current-year earnings has improved 1.5% over the past 60 days. INGR carries a Zacks Rank #2. Ingredionhas a beta of 0.46 and a current dividend yield of 2.34%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CocaCola Company (The) (KO) : Free Stock Analysis Report Altria Group, Inc. (MO) : Free Stock Analysis Report Philip Morris International Inc. (PM) : Free Stock Analysis Report Ingredion Incorporated (INGR) : Free Stock Analysis Report Nomad Foods Limited (NOMD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
