Carney announces new steel tariffs to be reviewed in 30 days pending U.S. trade deal

Prime Minister Mark Carney announced a new retaliatory tariff rate for steel imports as Canadian negotiators aim to reach a trade deal with U.S. counterparts in the next 30 days.

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Prime Minister Mark Carney announced a new retaliatory tariff rate for steel imports as Canadian negotiators aim to reach a trade deal with U.S. counterparts in the next 30 days.

Carney gave a press conference on Thursday, outlining the status of negotiations and announcing the new measures, which are scheduled to be reviewed in 30 days and extended if a deal isn’t reached within the month.

“We will take the time we need to negotiate the best deal for Canada, but no longer,” said Carney. “In parallel, we are ensuring that workers and industries are protected from the unjust U.S. tariffs.”

Canada will adjust or back off from the counter tariffs on July 21.

Carney also announced his intention to implement reciprocal procurement rules by June 30th, limiting access to federal procurement of steel and aluminum to only Canadian producers or tariff-free trading partners.

The new tariff rate quota of 100 per cent of 2024 levels on imports of steel products from non-free trade agreement partners was also announced.

The government will create two stakeholder task forces, one for steel and one for aluminum, to convene committees to monitor trade and market trends, supporting government decision-making.

The final announcement from Carney’s press remarks included a $10 billion large enterprise tariff loan facility, which eligible large businesses can use to access liquidity when struggling.

Trade Minister Dominic LeBlanc told reporters, “We have agreed to have another meeting tomorrow. I am following up with the deadline (July 21st). I am optimistic that in the next two to three weeks we can make progress.”

When Carney was asked about his goals in the near future, the Prime Minister said, “We need to have ready access to US markets for Canadian companies, not have our hand tied in terms of our dealings with the rest of the world.”

The American tariffs first came on March 4th after brief delays due to increased attention to border security-related matters, amounting to 25 per cent across the board on Canadian products and 10 per cent on energy and critical minerals.

Canada then responded with 25 per cent on around $30 billion of American goods.

On March 7th, a partial relief was granted for Canadian products that are CUSMA-compliant, not applied to steel and aluminum, which were tariffed by 25 per cent on March 12th.

Canada responded with a 25 per cent tariff on American goods, including steel and aluminum products, for $29 billion of products.

The US then hiked steel and aluminum import tariffs to 50 per cent, effectively doubling the burden on Canadian exports in the sector.

Carney also answered questions on the ongoing Iran-Israel conflict: “The prospect in any sense of that word of Iran having a nuclear weapon is destabilizing to peace in the Middle East. We absolutely support Israel in its right to defend itself.”

“We join others in looking for a resolution of this crisis that ensures that there is not a nuclear weapon capacity in Iran, ensuring stability in the region, leading to the prospect of broader peace in the Middle East.”