Bessent indicates U.S. willing to work with Canada on metals tariffs

Globe and Mail

a day ago

U.S. Treasury Secretary Scott Bessent is signalling that the U.S. is working with Ottawa on the punishing metals tariffs that are harming the U.S. auto industry.
Ford Motor Co. F-N earlier this week said that tariffs cost it US$800-million in its latest quarter with tariffs on Canadian steel and aluminum responsible for a significant portion.
U.S. President Donald Trump in March imposed 25-per-cent tariffs on global imports of both aluminum and steel, citing national security concerns over the U.S. not producing enough of the metals domestically. He doubled the levies in June.
The body of Ford's F-150 pickup, one of the biggest-selling vehicles in the U.S., is made from military-grade Canadian aluminum manufactured in Quebec.
Speaking on CNBC on Thursday, Mr. Bessent said he is aware that Ford's F-series trucks are made from aluminum, which is currently subject to a 50-per-cent tariff.
'I think maybe the aluminum tariffs hit them harder,' he said. 'We will be negotiating with Canada on those.'
Mr. Trump in recent days has indicated that he is willing to relent on some of his tariff threats.
After threatening to tariff the global copper industry, on Wednesday he limited the levy to only some copper products, such as pipes, wires, and rods. Mr. Trump spared a broad swath of the industry, including miners that extract copper concentrate as well as anodes, cathodes, and semi-processed materials.
Jim Ritchie, owner of Vancouver-based metals distribution company Cascadia Metals Ltd., said that Trump's tariffs on copper are a 'net win for Canada.'
'It is however still a hardship for American manufacturing, as now they will have to pay higher prices for finished copper products, either because of the 50-per-cent tariff or higher domestic prices.'
The existing Trump tariffs on aluminum, and steel have taken a heavy toll on both Canadian and U.S. industry.
Canadian steelmaker Algoma Steel Group Inc. is seeking around $500-million in funding from Ottawa to bolster its finances, and this week it suspended its dividend.
U.S. aluminum producer Alcoa Corp., which operates three smelters in Quebec, incurred US$150-million in tariff costs in its latest quarter.
Bill Oplinger, the chief executive officer of Alcoa told The Globe and Mail last week that he is seeking a carve out for Canada in aluminum tariffs because of the heavy hit the company is taking.
Prime Minister Mark Carney has been targeting Aug. 1 to reach a trade deal with the U.S.
But he has said that a tariff-free pact is unlikely, and he has indicated that the timeline to reach a deal may be pushed out.
While Mr. Trump has recently reached preliminary trade deals with several countries and trading blocs, including the EU, pacts with many other nations have not yet materialized.
Mr. Trump on Thursday pushed out the deadline to reach a deal with Mexico by three months.
The U.S. on Wednesday set the import duty for a range of copper products at 50 per cent starting Aug. 1, citing national security concerns as he attempts to bolster the country's manufacturing sector.
Pierre Gratton, president of the Mining Association of Canada, said that by being exempted from the Trump tariffs, copper miners are in a similar position to iron ore, nickel, and metallurgical coal companies that produce steel inputs.
'Our end of the business is largely untouched,' Mr. Gratton said. 'But steel is being hammered.'