Canadian Prime Minister Mark Carney has announced potential tariff increases on U.S. steel amid ongoing trade negotiations with President Donald Trump. The talks, which are scheduled to continue over the next month, follow President Trump's decision to impose hefty tariffs on imported steel and aluminum. These U.S. measures, which have significantly impacted Canada as the largest foreign supplier of these metals to the American market, were initially set at 25% and later doubled to 50%.
Carney has indicated that Canada's existing 25% tariff on U.S. steel and aluminum imports will be adjusted based on the progress of the negotiations. This move is part of a broader strategy to safeguard Canadian workers and businesses from what Carney describes as unjust tariffs currently in place. The prime minister has stressed the importance of reinforcing Canada's position in these negotiations and has prepared a comprehensive package of measures aimed at mitigating the impact of the U.S. tariffs.
The announcement comes after both leaders agreed to take a month to work towards a resolution. Carney emphasized Canada's commitment to negotiating in good faith while maintaining the readiness to increase counter-tariffs if no deal is reached. Additionally, he proposed barring Canadian government projects from using U.S. steel unless the U.S. provides tariff-free access to Canadian steel.
The ongoing discussions are part of a broader context of strained U.S.-Canada relations, exacerbated by President Trump's controversial statements and policies. At a recent G7 summit in Canada, global leaders urged President Trump to reconsider his approach to the trade dispute. Despite these tensions, President Trump has expressed optimism about reaching an agreement with Canada in the near future.
