August 7, 2020

Canada to Impose $3.6B in Tariffs in Response to U.S. Move Against Canadian Aluminum

The federal government will spend the next month consulting with Canadians about which U.S. metals products to target with retaliatory tariffs as a new trade dispute flares up, Deputy Prime Minister Chrystia Freeland said Friday. 

The government intends to impose $3.6 billion in punitive counter-measures after spending 30 days consulting with business leaders and other Canadians about potential targets from a preliminary list.

“Canada will respond swiftly and strongly,” Freeland told a news conference.

She made the announcement a day after U.S. President Donald Trump re-imposed tariffs of 10 per cent on certain aluminum products, ending a recent period of calm on the U.S.-Canada trade front. 

The products being targeted by the U.S. are used as raw materials in other aluminum-based goods, and comprised slightly more than half of Canadian aluminum exports to the U.S. over the past year. 

Freeland said Canada would seek to avoid escalating the dispute. She said the retaliation would be reciprocal and limited in scope.

To submit comments and general inquiries regarding potential targets, Canadians are invited to contact fin.tariff-tarif.fin@canada.ca.

For guidance on aluminum tariffs, please reach out:

(Source: CBC News)