Canada’s Prime Minister Mark Carney has condemned US President Donald Trump’s decision to double tariffs on steel and aluminum to 50%, escalating trade tensions between the two neighboring nations.
In a statement to reporters in Ottawa, Mr. Carney remarked: “The new tariffs on steel and aluminum are unwarranted, illegal, detrimental to American workers, harmful to American industry, and of course, also detrimental to Canadian industry.”
He assured that Canada, which is the largest foreign supplier of steel and aluminum to the United States, will “take some time, not much” to formulate a response.
Additionally, the Prime Minister pointed out that “intensive discussions” are ongoing with the US administration to revise Canada-US trade relations.
The agreement with US Commerce Secretary Howard Lutnick, he mentioned, was achieved after Mr. Ford consented to suspend the 25% surcharge on electricity exported to three American states.
“We cannot stand idly by while President Trump steamrolls us,” he emphasized, stating that “everything’s on the table” regarding countermeasures.
According to US government data, Canada exported 5.95 million tonnes of steel and 3.15 million tonnes of aluminum to the United States last year.
Trade negotiations between the European Union and the United States appear to be progressing positively, according to the main negotiators from both sides.
However, the EU expressed that increasing US tariffs on metals is not conducive to the negotiations.
The rise in tariffs on steel and aluminum imports—from 25% to 50%—took effect on the same day that the Trump administration requested trading partners to submit their “best offers” to avoid additional punitive levies starting in early July.
In another sign of disruption to global trade, fears escalated regarding the repercussions of China’s restrictions on critical mineral exports, prompting some European auto parts plants to halt production and German carmaker BMW to caution that its supplier network is experiencing shortages.
Steel ready for export is accumulating in Hangzhou, China.
Regarding tariff discussions, EU negotiator Maroš Šefčovič stated that a meeting with US Trade Representative Jamieson Greer in Paris was productive.
“We both determined that we are making progress in the right direction and at a good pace,” Mr. Šefčovič informed reporters.
He added that technical discussions are currently underway in Washington, with high-level communications to follow.
“What fills me with optimism is the visible advancement… the discussions have become quite concrete,” Mr. Šefčovič stated.
He underscored that he and Mr. Greer had agreed to realign the focus of their talks after approaching the issue from different perspectives.
Mr. Greer described the discussions as constructive, noting in a statement that they exhibited “a willingness from the EU to cooperate with us to identify a concrete path forward for reciprocal trade.”
Mr. Šefčovič expressed that he deeply regretted the doubling of tariffs, emphasizing that the EU faces similar overcapacity challenges in the steel sector, and collaboration is essential.
Separately, President Trump characterized his Chinese counterpart Xi Jinping as tough and “extremely hard to negotiate with.”
“I have always liked President Xi of China, and I always will, but he is VERY TOUGH AND EXTREMELY HARD TO MAKE A DEAL WITH,” the US leader remarked on Truth Social.
These comments followed President Trump’s accusations against China for breaching an agreement to reduce tariffs and trade restrictions, coinciding with rising expectations for a long-anticipated phone call between the two leaders this week.
A US trade court ruled last week that Mr. Trump exceeded his authority in imposing the majority of tariffs on imports from China and other nations under an emergency powers act.
Less than a day later, an appeals court reinstated the tariffs while considering the government’s appeal.
US officials have been engaged in discussions with various countries since President Trump announced a temporary halt to tariff increases in April.
However, only one agreement—with the UK—has been realized, and that merely serves as a preliminary framework for ongoing talks.
British Prime Minister Keir Starmer expressed confidence that US tariffs on UK steel would be reduced to zero within a “couple of weeks.”
The doubling of US tariffs on steel and aluminum has generated increased pressure.
The Organisation for Economic Cooperation and Development, comprised of 38 mostly developed nations, has downgraded its global growth forecast due to the tariffs.
According to Chief Economist Alvaro Pereira, trade, consumption, and investment have been adversely affected by the tariffs, warning that the US economy will bear the most significant repercussions.
Mexico plans to seek an exemption from the higher tariffs, with Economy Minister Marcelo Ebrard arguing that it is unjust, given that the US exports more steel to Mexico than it imports from there.
“It is illogical to impose a tariff on a product for which you have a surplus,” Mr. Ebrard stated.
Elsewhere, the uncertainty surrounding US trade policy is wreaking havoc for global businesses.
The French spirits company Remy Cointreau has abandoned its 2030 sales growth targets, citing tariffs, sluggish US sales, and considerable uncertainty as potential derailers of its financial plans.
Austrian specialty steel manufacturer Voestalpine has also warned that the tariffs are poised to impact its earnings negatively.
“US producers will seek suppliers who are not affected by the tariffs. If they find such suppliers, it is likely that the German supplier will lose out,” indicated the German steel and metal processing association WSM, which represents around 5,000 companies.
“No one has the margins to absorb these relentless tariffs,” asserted WSM Managing Director Christian Vietmeyer.
“Therefore, the EU must do everything within its power to resolve this customs conflict.”
