Steel industry groups say Carney's retaliatory plan for U.S. tariffs ‘falls short'

Hamilton Spectator

4 hours ago

OTTAWA - The Canadian Steel Producers Association and United Steelworkers Union are panning Prime Minister Mark Carney's response to U.S. President Donald Trump's punishing tariffs.
Their response came hours after Carney announced a tariff countermeasure plan Thursday that includes retaliation against Trump's steel and aluminum tariffs a month from now — depending on how much progress the two world leaders make in their trade discussions.
The two steel organizations issued a joint statement late Thursday saying Carney's plan 'falls short of what the industry needs at this most challenging time.'
'We will continue to review the details of the measures and work constructively with the federal government to get a plan that works for Canadian steel producers and the thousands of workers that make up our sector,' Catherine Cobden of the steel industry association and Marty Warren, the union's national director, said in the joint statement.
Carney said that while he and Trump are pursuing a deal to end tariffs within the next 30 days, Canadian counter-tariffs will be adjusted on July 21 to 'levels consistent with progress made in the broader trading agreement with the U.S.'
'We must reinforce our strength at home and safeguard Canadian workers and businesses from the unjust U.S. tariffs,' Carney told a press conference on Parliament Hill following a federal cabinet meeting.
The announcement came just a few hours before Canadian steel industry representatives were set to publicly call on the government to take immediate action in response to the U.S. tariffs. The steel producers instead held off and scrubbed their press conference.
Jean Simard, head of the Aluminium Association of Canada, said in a media statement Thursday that the measures Ottawa announced 'strike the right balance.'
He said the government needs to carefully balance 'sending a strong signal towards focused and accelerated negotiations and using a measured approach through adaptive counter-tariffs and reciprocal procurement policies.'
'In this rapidly evolving situation, with potentially high financial impacts due to uncontrollable market reactions, we will need and seek agility and speed for government interventions should we reach the 30-day deadline without a positive resolve,' Simard added.
Trump imposed his 25 per cent tariff on all steel and aluminum imports in March and Canada responded with 25 per cent counter-tariffs on U.S. steel and aluminum products in March.
But Canada has not changed its tariffs yet since Trump increased U.S. tariffs on steel and aluminum to 50 per cent on June 3.
The U.S. steel and aluminum tariffs apply to the entire world, not just Canada, which has led to concerns about dumping — foreign companies flooding the market with products priced far below the prices domestic firms can charge.
Trump's escalating tariff war has slammed demand and prices for Canadian steel, prompting layoffs and leaving the industry worried about its future.
Ottawa also plans to introduce rules on June 30 that will limit federal procurement to using steel and aluminum from Canada and 'reliable trading partners.'
The Carney government will also set new tariff rate quotas of 100 per cent of 2024 levels on imports of steel products from non-free trade agreement partners.
NDP Leader Don Davies said in a media statement Thursday that the Liberal government is only taking baby steps to address the crisis. He called for an emergency response plan packed with supports for workers.
'They're taking one small step after another, which won't make a meaningful difference and will ultimately cost many workers their jobs,' Davies said.
Two weeks ago, when Trump increased the tariff rate, the Canadian Steel Producers Association — whose members include Algoma Steel, ArcelorMittal, Rio Tinto and Tenaris — immediately called on Carney to hit back with new tariffs and warned that Canada was being edged out of the U.S. market.
They met with Industry Minister Mélanie Joly, who said on June 4 the government 'will take a decision but we need a bit more time right now — not too long.'
Just before the cabinet meeting on Thursday, Joly acknowledged that the U.S. tariffs have left Canada's steel and aluminum industries in a state of emergency.
'We know that the Canadian steel and aluminum workers are very anxious and they want us to come up with a solution really, really quickly,' she said.
The prime minister also announced Thursday the creation of two separate task forces for steel and aluminum that will meet to monitor the situation and advise the government.
This report by The Canadian Press was first published June 19, 2025.