Canada is planning a “dollar for dollar retaliation” against 10% tariffs on aluminum products announced by President Donald Trump.
“Canadian aluminum does not undermine US national security. Canadian aluminum strengthens US national security and ahs done so for decades through unparalleled cooperation between the two countries,” Deputy Prime Minister Chrystia Freeland said in a statement. Trump cited section 232 of the US Trade Expansion Act, and accused Canadians of flooding the market.
The new Canada-United States-Mexico Trade agreement came into force July 1st. “Now is the time to advance North American economic competitiveness- not hinder it. Through robust, new rules of origin for automobiles, the new NAFTA ensures 70% of the aluminum purchased by North American automakers is produced in North America,” Freeland said. Canada produced 2.8 million metric tonnes of aluminum in 2019. It’s estimated the industry provides up to 10,000 well paying jobs.
Ontario Premier Doug Ford added his voice to the opposition. “We welcome the federal government’s commitment to defend the interests of Ontario’s aluminum sector and businesses in Canada and the US. We urge them to press the US administration for immediate and permanent removal of its tariffs on Canadian aluminum, and to ensure that no other trade impediments such as quotas are introduced,” he said. Ontario exported an estimated $2.6 billion worth of aluminum products last year. Approximately $2.4 billion was exported to the United States.
Canada will be announcing its countermeasures shortly.
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