The government is considering adjusting tariffs on the United States in July.

Canada Considers Adjusting Steel and Foreign exchange informationAluminum Counter-Tariffs in Response to Trump Trade Pressure

On June 20th, the Canadian government announced that if substantial progress is not made in trade negotiations with the U.S. government, it will adjust counter-tariffs on U.S. steel and aluminum products next month. The Canadian side emphasized that this move is aimed at responding to the high tariffs imposed by the Trump administration and protecting against unfair impacts on Canada's domestic industries.

According to an official Canadian statement: "We will adjust the existing counter-tariffs on July 21st to coincide with the progress of broader trade arrangements with the U.S." Currently, the U.S. imposes tariffs of up to 50% on imported steel and aluminum, while Canada responds with a 25% retaliatory tariff.

Prime Minister Carney stated at a press conference that if the negotiation results are unsatisfactory, countermeasures will be escalated. "We will negotiate in good faith, but we must also protect the interests of Canadian workers and businesses," he added.

Using Domestic Steel and Aluminum to Support Local Manufacturing

In addition to tariff adjustments, Canada announced that new regulations will be applied to federal government projects: only steel and aluminum produced in Canada or from "reliable partners" with trade agreements with Canada can be used. This policy aims to promote domestic manufacturing development and guard against potential dumping risks.

Benefiting from the policy announcement, shares of Canadian steel manufacturer Algoma Steel Group Inc. rose 7.9%, reaching their highest intraday level since early March.

The Canadian Steel Producers Association and the Steelworkers Union issued a joint statement expressing their willingness to actively cooperate with government policies, stating they will "maintain constructive dialogue with the federal government to jointly formulate industry protection plans that align with national interests."

Refusing to Passively Accept Unfair Tariffs

Carney also pointed out that Canada will not passively accept certain tariffs imposed by the U.S. during trade negotiations. "True free trade should be mutually beneficial," he said. "If the agreement benefits Canada, we will accept it; if not, we will firmly reject it."

Canadian government officials are in ongoing communications with senior U.S. officials. Prime Minister Carney revealed that he maintains "relatively frequent" contact with President Trump. Meanwhile, Cabinet Minister LeBlanc is also in talks with U.S. Commerce Secretary Howard Lutnick and Trade Representative Jamison Greer, with a new round of discussions scheduled for Friday.

Preventing Dumping and Expanding Funding Support for Domestic Enterprises

Given the possibility that high U.S. steel and aluminum tariffs could lead global manufacturers to redirect shipments to Canada, the Canadian side is concerned about potential market dumping risks. Therefore, Canada plans to establish new import quotas for steel and aluminum, and implement related tariff control measures in the coming weeks.

Simultaneously, Carney announced the government will provide a total of 10 billion Canadian dollars in federal loans to offer liquidity support to large domestic enterprises facing financing difficulties. "We must ensure that key industries do not lose competitiveness due to international pressure," he said.

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