Prime Minister Justin Trudeau said Canada will try to convince the United States in the coming weeks that announced tariffs on steel and aluminum will cut both ways.
“We will be working with the American administration over the coming weeks to highlight the negative impacts on Americans and Canadians of these unacceptable tariffs,” Trudeau said on Feb. 11 while attending a summit on artificial intelligence in France.
Trudeau said he hopes Canada won’t have to impose dollar-for-dollar retaliatory tariffs. He said, however, that work will be done with “international partners and friends” and a response will be “firm and clear” if necessary.
The prime minister will be visiting Belgium next, where he said he will discuss the new tariff developments with the European Union.
Trump recently said he will be imposing reciprocal tariffs on many countries this week. The United States has one of the lowest tariff average tariff rates in the world, according to the World Trade Organization.
Second Round
Trump had imposed 25 percent tariffs on steel and 10 percent tariffs on aluminum from Canada during his first term in 2018. Canada responded with similar tariffs, while also targeting a long list of U.S. products with a 10 percent surtax.The two countries came to an agreement to stop the trade dispute nearly a year later in May 2019, pledging to prevent the importation of “unfairly subsidized” steel and aluminum or the transshipment of these material made outside Canada or the United States.
Trump’s rationale for re-imposing tariffs is similar to that of the first round in 2018. He says the U.S. reliance on imports for the key manufacturing materials is a threat to national security. The U.S. president seeks to boost domestic production and create jobs.
The association said Canada and the United States must maintain their cooperation and instead focus on “addressing the devastating impacts of unfair Chinese trading practices stemming from massive state subsidies on the entire aluminium ecosystem.”