Summary: The Canadian government will respond to the Trump administration's re-imposition of tariffs on Canadian aluminum, with retaliatory tariffs on U.S. aluminum totaling C$3.6 billion. The specific list of tariff countermeasures will be announced soon.
According to Canadian media reports on September 12, the Canadian government will respond to the Trump administration's re-imposition of tariffs on Canadian aluminum, with retaliatory tariffs on U.S. aluminum totaling C$3.6 billion. The specific list of tariff countermeasures will be announced soon.
Kirsten Hillman, Canada's ambassador to the United States, said in an interview on Friday that countermeasures will come into effect soon and remain in place until the United States removes its tariffs on Canada.
Trump announced during a speech on Thursday at Whirlpool's manufacturing plant in Ohio that he had signed a proclamation imposing a 10% tariff on aluminum imported from Canada, a tariff that had been lifted a year ago.
The president complained that Canada puts American aluminum workers at a disadvantage, and that Canadian aluminum imports have increased significantly, harming domestic aluminum production and capacity utilization.
Canadian Deputy Prime Minister Freeland criticized the claim, saying the tariffs would instead hurt U.S. consumers. "These tariffs are unnecessary, unfounded, and completely unacceptable. Canadian aluminum absolutely does not pose a threat to U.S. national security, which remains the stated reason for these tariffs. That is an absurd concept." With the two countries imposing tariffs on each other, the new North American trade agreement is at risk of collapse. Data from the Aluminum Association show that Canada, Russia, and China are the main sources of U.S. aluminum imports. The U.S. tariffs will only increase costs for American consumers and undermine confidence in the aluminum supply security of the North American market.
Canada has abundant hydroelectric power, giving its primary aluminum production more natural advantages than the United States. The U.S. tariffs on aluminum, an important industrial raw material, will also affect the automotive manufacturing industries of both the United States and Canada.