Trade Cases
Canada claps back on Trump tariff news
Written by Ethan Bernard & Stephanie Ritenbaugh
June 3, 2025
Canadian Prime Minister Mark Carney says his government will fast-track national projects to boost the country’s economy as it counters US President Trump’s tariffs, according to media reports.
At a rally near Pittsburgh Friday evening, Trump said he would double Section 232 tariffs on imported steel from 25% to 50%, effective Wednesday, June 4. He later added that aluminum would be included.
Carney outlined a plan on Monday to make it easier to build out infrastructure, like pipelines, nuclear reactors, and trade corridors, and create a framework in which the projects would be approved in under two years’ time, according to the BBC.
Carney said the goal is to quickly build infrastructure that will make Canada “the strongest economy in the G7,” as well as strengthen the country’s autonomy and resilience in the future, the BBC reported.
The prime minister called Trump’s latest tariffs “unjustified and unlawful.”
Questions remain on whether the import taxes will change as the trade wars have been marked by sudden changes.
US trade groups cheer
The American Iron and Steel Institute (AISI) and Steel Manufacturers Association (SMA), trade associations that represents domestic interests, praised the tariff announcement.
“Led by China, global steel overcapacity and production continues to grow, even as overall global steel demand is being impacted by the sharp downturn in the Chinese construction sector,” AISI President and CEO Kevin Dempsey said in a statement.
“Given these challenging international conditions that show no signs of improvement, this tariff action will help prevent new surges in imports that would injure American steel producers and their workers,” he added.
Likewise, SMA applauded Trump’s announcement.
“This action will strengthen a vital industry that has suffered from global overcapacity, largely driven by China,” SMA said in a statement.
“Since the tariffs were first announced in 2018, our industry has invested over $20 billion in growth and modernization,” the association added. “Increasing the tariffs will promote greater investment and ensure that steel imports do not surge into the US market.”
Canadian union jeers
The United Steelworkers National Director for Canada warned the threat to double levies on both steel and aluminum is a “devastating blow” to Canada’s industries.
“A 50% tariff would completely shut us out of the US market,” said Marty Warren in a statement. “This isn’t trade policy – it’s a direct attack on Canadian industries and workers. Thousands of Canadian jobs are on the line and communities that rely on steel and aluminum are being put at risk. Canada needs to respond immediately and decisively to defend workers.”
“Workers in Canada’s steel and aluminum industries have already been hit hard by months of uncertainty. Now their livelihoods are being threatened again,” Warren added.
The USW is urging the Canadian government to apply targeted countermeasures to protect the Canadian market from offshore steel and eliminate exemptions that allow US steel and aluminum to enter Canada tariff-free.
Ethan Bernard
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Stephanie Ritenbaugh
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