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Canada waits to see if Trump will follow through on steel and aluminum tariff threat

Canada waits to see if Trump will follow through on steel and aluminum tariff threat
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Canada’s steel and aluminum industries find themselves once again watching for any news out of the White House after U.S. President Donald Trump promised to impose 25 per cent tariffs on imports.

Speaking to reporters from his plane on the way to the Super Bowl, Trump said the tariffs would apply to “any steel coming into the United States.”

When asked whether aluminum would be subject to the trade penalties, he responded, “aluminum, too”

The White House said Trump is signing executive orders at 5:30 p.m. ET Monday.

A senior Canadian government official told CBC News that Ottawa is waiting to see the order in writing before responding. 

The federal government is under pressure from industry and the opposition to retaliate with swift countermeasures if Trump follows through on his threat. 

Catherine Cobden, the head of the Canadian Steel Producers Association, has warned tariffs would hit a wide spectrum of industries from energy to construction.

“We represent about 20 per cent of all their steel imports. They represent about 40 per cent of ours,”  she told CBC News.

“If these tariffs proceed, they will be devastating but challenging on both sides of the border.”

In a social media post on Sunday, Industry Minister François-Philippe Champagne said the government will “stand up for Canada, our workers and our industries.”

“Canadian steel and aluminum support key industries in the U.S. from defence, shipbuilding and auto,” the minister said.

WATCH | Poilievre says he’d retaliate with matching tariffs on U.S. aluminum and steel: 

Poilievre says he’d retaliate with matching tariffs on U.S. aluminum and steel

6 hours ago

Duration 0:48

Conservative Leader Pierre Poilievre said Monday that Canada will never become the 51st state and that ‘we will defend our future and our independence.’ U.S. President Donald Trump is expected to announce Monday that the U.S. will impose 25 per cent tariffs on steel and aluminum imports, including from Canada.  

The leaders of two of the main opposition parties called for retaliatory measures if Trump moves ahead. 

During a news conference Monday morning Conservative Leader Pierre Poilievre said, if elected, his party would use the proceeds of retaliatory measures to support the steel and aluminum industry. 

“And any surplus will be given in tax relief for our people,” he said during a stop in Iqaluit, where he unveiled his plan to protect Canada’s North.

“These tariff threats are a wake-up call.”

NDP calls for tariffs on Tesla

NDP Leader Jagmeet Singh said if Trump follows through with his threat to apply a tariff to all Canadian goods, a New Democrat federal government would slap 100 per cent tariffs on all products made by electric vehicle manufacturer Tesla. Its CEO, Elon Musk, is one of Trump’s top advisers and is leading the Department of Government Efficiency.

“When it comes to Elon Musk, I want to send a message directly to him,” Singh said Monday. 

“He thinks that he can pick a fight with Canada? He thinks he can say that we should be the 51 state? We’re going to hit him back.”

Trump has spent the first three weeks of his presidency threatening trade wars with allies, including Canada and Mexico.

He has threatened to impose broad tariffs — 25 per cent on all Canadian and Mexican goods and 10 per cent on Canadian oil — citing what he sees as border security issues around fentanyl and illegal immigration.

Those were planned to come into effect on Feb. 3 , but Trump offered Canada and Mexico a month-long reprieve, after the two countries presented the president with updated border plans. 

First announced in December, Canada’s plan includes $1.3 billion in spending on enhanced border security, including patrols with helicopters. Trudeau has also promised to appoint a “fentanyl czar,” who will work with U.S. counterparts in combating the toxic drug crisis.

This is not the first time Canada’s steel and aluminum industries have been in Trump’s crosshairs.  

Trump imposed steel and aluminum tariffs at 25 and 10 per cent respectively during his first term in March 2018, using national security as justification.

Canada responded with a series of counter-tariffs on American products like Florida orange juice.

In May 2019, the White House announced a deal had been reached to prevent “surges” in the steel and aluminum supplies from Canada and Mexico, ending the trade dispute.

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