Canada in "intensive discussions" with U.S. over steel and aluminum tariffs.

Canadian Prime Minister Mark Carney says his government is having "intensive discussions" with the US to remove the "unjustified and illegal" increase on steel and aluminum tariffs. The US doubled the tariffs, citing national security concerns. Carney argues the tariffs are bad for American and Canadian workers and industries. Finance Minister François-Philippe Champagne said the government's priority is to fight against the tariffs.

Title: Canada and US in Talks to Remove Steel and Aluminum Tariffs

Canadian Prime Minister Mark Carney has stated that his government is in "intensive discussions" with the United States to remove the "unjustified and illegal" increase on steel and aluminum tariffs. The U.S. doubled the tariffs, citing national security concerns, which has dealt a significant blow to Canadian steel and aluminum exports. Over 90% of Canada's steel and aluminum is exported to the U.S., according to 2024 federal government statistics [1].

Carney has argued that the tariffs are detrimental to both American and Canadian workers and industries. He pledged that every dollar from Canada's retaliatory tariffs will be used to support impacted Canadian businesses, though details on how this will be achieved remain unspecified.

Finance Minister François-Philippe Champagne has emphasized that the government's priority is to fight against the tariffs. He has stated that Canada needs to use more Canadian steel and implement measures to favor its domestic steel industry [1].

The Aluminum Association of Canada has expressed concerns that the additional tariffs make Canadian exports to the U.S. "economically unviable," potentially increasing U.S. reliance on aluminum from distant sources [1]. The Canadian Steel Producers Association has called on Carney to fully reinstate retaliatory tariffs on U.S. steel and implement new border levies on all other foreign steel imports [1].

U.S. President Donald Trump has accused foreign countries of offloading lower-priced steel and aluminum into the American market, undercutting the domestic industry. He believes that the increased tariffs will more effectively counter these practices [1]. White House spokesperson Karoline Leavitt has stated that Trump is unafraid to use tariffs to protect American industries and workers [1].

The impact of these tariffs extends beyond Canada and the U.S. European stock markets are expected to react negatively to the tariff increase, with wind energy developer Ørsted likely to feel a significant impact [3]. The Danish multinational company has already experienced a loss of 1.2 billion Danish kroner due to the initial 25% tariffs, and analysts predict another c.DKK1.2bn impairment in the second quarter with the 50% tariff [3].

Investors are closely watching the potential for escalating U.S.-EU tariffs, which could further disrupt global trade and affect various industries. The Stoxx 600 index in Europe has shown a downbeat mood, with sectors like autos, technology, and household goods experiencing declines [3].

References:
[1] https://nationalpost.com/news/canada/trump-to-double-steel-and-aluminum-tariffs-on-canada-white-house-press-secretary
[3] https://www.nbcwashington.com/news/business/money-report/europe-stock-markets-set-for-negative-start-to-week-after-trump-doubles-steel-tariffs/3926014/?os=io..PyTnQ7yC&ref=app