Background on Key Figures and Relevance
Mark Carney, the current Governor of the Bank of England, previously served as the Prime Minister of Canada from 2015 to 2018. During his tenure, he played a crucial role in managing Canada’s economic policies and international trade relations. As the head of the Canadian delegation, Carney is central to negotiations with the United States regarding tariffs on steel and aluminum.
Canada’s Announced Tariff Adjustments
On Thursday, Prime Minister Mark Carney announced that Canada will adjust its 25% retaliatory tariffs on US steel and aluminum if a bilateral trade agreement is not reached within the next 30 days. These tariffs were imposed in response to the US duplicating its own tariffs on these metals to 50%.
- Tariff Adjustment Date: The adjustments will take effect on July 21, following the 30-day negotiation period.
- Targeted Industries: The tariff adjustments will impact US steel and aluminum imports into Canada.
- Canadian Exports: Canada is the leading exporter of both steel and aluminum to the United States.
Support Measures for Canadian Industries
Alongside the tariff adjustments, Carney unveiled several support measures for Canadian steel and aluminum industries facing US customs tariffs of 50%. These measures include:
- Domestic Procurement Rules: Favoring national suppliers in government procurement processes.
- Anti-dumping Measures: Implementing measures to protect Canadian industries from unfairly priced imports.
Context of Ongoing Negotiations
Earlier in June, Carney deemed the US decision to double its steel and aluminum tariffs as “illegal” and “unjustified.” Since then, Canada and the US have engaged in intense discussions to reshape their bilateral trade relations.
During the G7 summit in Canada, world leaders urged President Trump to reverse his trade war stance. Following a meeting between Carney and Trump, there was optimism that a trade agreement could be reached within the next 30 days.
Key Questions and Answers
- What are the tariffs being adjusted? Canada will adjust its 25% retaliatory tariffs on US steel and aluminum.
- When will these adjustments take place? The tariff adjustments are set to occur on July 21, following a 30-day negotiation period.
- Why are these adjustments necessary? The US doubled its tariffs on steel and aluminum to 50%, prompting Canada’s response.
- What support measures are being implemented? Canada will introduce domestic procurement rules favoring national suppliers and anti-dumping measures to protect its industries.
- What is the goal of these negotiations? Stabilize trade relations with the US and ensure Canadian businesses have better access to US markets.
In 2024, Canada exported 5.95 million tonnes of steel and 3.15 million tonnes of aluminum to the United States, according to US official data.
