Trump says he plans to double steel and aluminum tariffs
Canadian Steel Producers Association says move would cause harm on both sides of border
U.S. President Donald Trump said he will double the tariffs on steel and aluminum imports to 50 per cent next Wednesday, prompting critical response from Canada's steel industry.
Trump initially announced the boosted duties on steel during a rally at U.S. Steel's Mon Valley Works–Irvin Plant near Pittsburgh Friday evening. He told a cheering crowd of steelworkers that the increased levies will "further secure the steel industry in the United States."
"Nobody is going to get around that," Trump said.
In a post on social media after the rally, Trump said he would also be increasing tariffs on aluminum to 50 per cent.
"Our steel and aluminum industries are coming back like never before," he wrote. "This will be yet another BIG jolt of great news for our wonderful steel and aluminum workers. MAKE AMERICA GREAT AGAIN!"
The U.S. first imposed 25 per cent tariffs on steel and aluminum from Canada on March 12. Ottawa announced a plan to levy tariffs on $29.8 billion worth of American goods, almost immediately after the U.S. levy on metals was pushed through.
Canadian Prime Minister Mark Carney did not immediately comment.
On Saturday, Intergovernmental Affairs Minister Dominic LeBlanc said Ottawa had "taken note" of Trump's remarks.
"In the face of economic threats posed by the United States, Canada remains resolute in defending our workers and our communities," he wrote on X. "We can give ourselves far more than the United States can take from us."
LeBlanc said strengthening the domestic economy to reduce its reliance on the United States would be part of Carney's discussions with the 13 premiers on Monday.
Canada is the largest steel supplier to the United States, accounting for nearly 25 per cent of all imports in 2023. About a quarter of all steel used in America is imported.
Canadian steelmakers condemn increased tariffs
The head of the Canadian Steel Producers Association (CSPA) said Saturday that Trump's move to increase tariffs would close the U.S. market to Canada's domestic industry for half of its production.
"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," CSPA president and CEO Catherine Cobden said in a statement Saturday.
"This latest announcement from the Trump administration is a further blow to Canadian steel that will have unrecoverable consequences."
Industry Minister Melanie Joly said she has been in "constant contact" with steel and aluminum producers in Canada and expects to meet with them in the coming days.
Trump on Friday said he was thinking about a 40 per cent tariff, but said "the group" wanted it to be 50 per cent.
As the duties have increased with Trump's tariffs, the government's producer price index found the price of steel products has gone up roughly 16 per cent.
Bea Bruske, president of the Canadian Labour Congress, said Trump's plan to double steel and aluminum tariffs is "yet another direct attack on Canadian workers and a reckless move that will send shock waves across the Canadian economy."
"This decision will shut us out of the U.S. market completely, devastating Canada's steel and aluminum industry and threatening thousands of good-paying, unionized Canadian jobs," Bruske said.
Unions call for immediate government action
Bruske said that, in light of the escalating threat, Canada's unions call for immediate government action to protect workers. That includes emergency reforms to employment insurance and wage subsidies.
"We need a government that is prepared to stand up for Canadian industries, invest in good union jobs, and protect our economic sovereignty in the face of growing international uncertainty," Bruske said.
Candace Laing, president and CEO of the Canadian Chamber of Commerce, said in a statement that unwinding the "efficient, competitive and reliable" cross-border supply chains in steel and aluminum "comes at a great cost to both countries."
Laing said that, in 2018 under the last round of steel and aluminum tariffs, there was significant net negative job loss in America.
"Doubling the steel and aluminum tariffs to 50 [per cent] is antithetical to North American economic security," she said. "The fact remains that Canada is a reliable and secure trading partner that supplies materials that sustain American jobs."
With files from CBC News and The Canadian Press