Canada Is Not Happy About Additional Tariffs

President Trump recently signed an order that doubled tariffs on all imported steel and aluminum products from 25% to 50%, to take effect immediately for the American market.  The U.S. is the largest importer of steel in the world after the European Union and is the world’s largest aluminum importer. It currently gets many of those raw products from Canada.

The Canadian metals industry is calling on Ottawa to retaliate and to match those 50% tariffs. Shortly after the U.S. announcement, Prime Minister Mark Carney’s reaction was to say that the tariffs were both unjustified and illegal. However, with discussions currently taking place and the fact that Canada was not specifically targeted, Carney says that Canada is going to take a breath before reacting.

These Tariffs Are Bad For Canadians & Americans

“They’re bad for American workers, bad for American industry, and, of course, bad for Canadian industry as well," Carney said.  "We will take some time, not much, because we are in intensive discussions right now with the Americans on the trading relationship. And I would note that the American action is a global action. It’s not one targeted at Canada. So, we will take some time, but not much.”

Ontario Premier Doug Ford was more direct in his response. Ford said that he wants the American public to realize that a tariff is a domestic consumer tax. And he said because much of Canada’s raw exports are bought back as finished products, this latest action will only hurt U.S. steel and aluminum workers now that Canadian raw products are priced out of the U.S. market.

“He just taxed Americans 15 billion dollars by adding these tariffs," Ford said.  "It’s very short-sighted, in my opinion. And, maybe the steel sector’s jumping up and down, but when they start laying people off. We ship aluminum down there, they convert it, and ship it back up. That’s done.”

This Could Kill Production, Hurting Both The Canadian And American Economy

Steel mills are the largest employer in Sault Saint Marie, Ontario.  That town’s mayor, Matthew Shoemaker, agrees with Premier Doug Ford’s assessment. A 50% tariff on imported steel into the American market will cripple and possibly kill production.

“It makes the product uneconomical to sell at a 50% increase in cost," Shoemaker noted.  "They were able to hobble along, I would say, with a 25% tariff, but at 50 percent, there might not be Canadian steel being produced.”

Trump Supporters Will Soon Be Mad

Already high metal prices are continuing to rise as a result of the new measures. David Frum is a Canadian political analyst living in Washington, D.C. Frum believes that this surprise doubling of tariff rates on industrial-foundation goods like steel and aluminum is soon going to cost President Trump the goodwill of many of his most loyal supporters.

“They’re going to come as a tremendous shock to a lot of people who trusted Trump," Frum said.  "Imported goods suddenly cost a lot more, including cars and trucks, because of Trump’s tariffs. Sooner or later, they feel the reality, and the reality is going to hurt, and they may be mad.”

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