How has Canada responded to Trump's tariff hike on steel and aluminum?
Retaliatory tariffs aren't coming right now, Industry Minister Melanie Joly says
Prime Minister Mark Carney has called Tuesday's doubling of steel and aluminum tariffs by U.S. President Donald Trump "unjustified" and pledged to respond, but what that response might look like isn't clear yet, with officials batting down the idea of immediate counter-tariffs.
Trump's order increasing the 25 per cent tariff on steel and aluminum announced in February to 50 per cent came into effect at midnight Tuesday, and some industry experts and politicians, including Ontario Premier Doug Ford, immediately called for swift retaliatory tariffs.
So far, the federal government hasn't said what retaliatory measures Canada might use, but Industry Minister Mélanie Joly indicated Wednesday afternoon that the government won't be announcing matching tariffs on U.S. goods at the moment.
What is the federal response so far?
Carney called the new tariffs "unjustified" and "illegal" in a comment to reporters Wednesday morning ahead of the regular Liberal caucus meeting but did not reveal any new government actions.
"They're bad for American workers, they're bad for American industry, and, of course, for Canadian industry as well," he said.
He said his government would take "some time" to formulate a response. "Not much — because we are in intensive discussions right now with the Americans on the trading relationship," Carney said.
"I would note that the American action is a global action; it's not one targeted at Canada."
Joly echoed these sentiments Wednesday afternoon in an update that didn't offer many specifics on what the government is planning.
"We know that people are anxious," she said.
The government is continuing negotiations with the U.S., she said, emphasizing the need for Canada to create a strong domestic market for steel and aluminum through "major infrastructure projects" to spur jobs creation.
When asked if counter-tariffs were being considered, she pointed to Canada's previous measures, which include a 25 per cent tariff on $30 billion worth of U.S. goods.
"We have had really strong counter-tariffs against the Americans already," she said. "We are looking at different scenarios right now, and we will take a decision, but we need a little more time right now."
Finance Minister François-Phillipe Champagne, speaking Wednesday prior to the caucus meeting, said that the government's priority was "to fight against these tariffs" but also did not provide specifics.
Canada-U.S. Trade Minister Dominic LeBlanc was in Washington, D.C., on Tuesday for a meeting with U.S. Commerce Secretary Howard Lutnick. Afterward, he described the meeting as "a positive conversation" but did not confirm if an exemption for Canada was in the cards.
During a fiery question period in the House of Commons, members of the Conservative party and Bloc Québécois slammed the federal government for its response, calling for more specifics in how the government is planning to support the industry in light of these tariffs.
Ontario Premier Doug Ford, meanwhile, called for the federal government to respond immediately and place an additional 25 per cent tariff on U.S. steel coming into Canada.
"We can't sit back and let President Trump steamroll us," he said Wednesday.
He said he would be looking at how to ensure that manufacturers in Ontario, where Canada's steel industry is concentrated, are using as much domestic steel as possible.
"We have to use Ontario steel, Canadian steel, at all costs," he said.
When asked if he would consider placing a surcharge on electricity exports to the U.S. again, which he briefly threatened to do in March, he didn't rule it out. "Everything's on the table right now."
How is the steel and aluminum industry reacting?
Catherine Cobden, CEO of the Canadian Steel Producers Association, told CBC News on Tuesday that a 50 per cent tariff means that the U.S. market is de facto "completely closed" to Canadian steel.
She said she is expecting to see more job losses on top of the ones already underway in the wake of the initial 25 per cent tariff. Canada is the top exporter of steel and aluminum to the U.S.
Some companies worry that the additional tariff hike will paralyze suppliers and customers while others say they have some wiggle room to adjust for now.
Keanin Loomis, president and CEO of the Canadian Institute of Steel Construction, said that Canada needs to "forcefully respond," to these additional tariffs.
He's calling for more retaliatory tariffs to be added to goods entering from the United States but cautioned that this should be done carefully to minimize blowback on Canadian businesses.
This was echoed by François Racine, CEO of the industry group AluQuebec, who told CBC News Network that countermeasures targeting finished goods and products made in the U.S. is something he supports, but that placing tariffs on components and key products that Canadian manufacturers need won't help those businesses.
In a joint press conference between labour, business and municipal leaders, Candace Laing, president and CEO of the Canadian Chamber of Commerce, endorsed the use of "targeted counter-tariffs," noting the need to protect Canadian industries that might rely on certain imports.
Bea Burke, president of the Canadian Labour Congress (CLC), urged the government in the press conference to act with "strength and with purpose" during this trade war. She said the CLC, which represents the majority of unions across Canada, is calling for emergency reforms to employment insurance to support workers who lose their jobs, made-in-Canada tax credits to incentivize Canadian sourcing, and a "firm commitment to use Canadian-made steel in all public infrastructure."
How did the Bank of Canada react?
Tiff Macklem, governor of the Bank of Canada, announced on Wednesday that the central bank would be holding its key interest rate steady at 2.75, "as we continue to gain more information on U.S. trade policy and its impacts."
He called the trade war "the biggest headwind facing the Canadian economy" and noted that while the economy has shown some resilience in the face of tariffs and countermeasures if the trade rift is not resolved, the impacts will get worse.
"The longer these tariffs go on, the more this uncertainty goes on, the more this is going to weigh on the Canadian economy."
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With files from CBC News' Jenna Benchetrit