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Canada to expedite nation building projects to counter Trump

Canada to expedite nation building projects to counter Trump

Yahoo2 days ago

Canadian Prime Minister Mark Carney said his government will start pushing legislation that would fast-track ambitious national projects to boost Canada's economy, now faced with Donald Trump's tariffs.
Carney outlined his plan on Monday after a meeting - described as "very productive" - with the leaders of Canada's provinces and territories.
"This has been the best meeting we've had in 10 years," Ontario premier Doug Ford told reporters.
Carney said his plan is to narrow down a list of so-called "nation building" projects - like pipelines, nuclear reactors and trade corridors - and create a framework in which the projects would be approved in under two years' time.
The goal, he said, 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.
"This meeting demonstrated how we can give ourselves far more than any foreign government can take away," Carney told reporters.
Monday's meeting marked Carney's first with Canada's premiers since his federal election win in April.
He had campaigned heavily on bolstering the country's economy to counter tariff threats from the US, with whom Canada does the bulk of its trade.
President Trump has imposed tariffs on Canadian steel, aluminium and its auto sector, and said he plans to double levies on steel and aluminium to 50%, starting on Wednesday to "further secure the steel industry in the United States."
Carney called the latest tariffs "unjustified and unlawful".
He added that Canada's minister for US-Canada trade Dominic LeBlanc will be travelling to the US on Monday evening to resume trade talks.
In the meantime, Carney said his government will focus on "projects of national interest" to help Canada sell its resources in more markets, strengthen its security and reduce reliance on other nations.
These projects can come from provinces or the private sector, and must meet a criteria that includes offering "undeniable benefit" to Canada's economy and having "a high likelihood" of being built successfully.
They also must be environmentally clean and sustainable, and a high priority for Canada's indigenous communities, Carney said.
They can include anything from highways, railways, ports, airports, pipelines, nuclear projects, clean energy projects and electric transmission lines.
Another priority, Carney said, is building infrastructure in the Arctic to secure the territory and cement Canada's sovereignty in the region - where other nations, including China, Russia and the US, are fighting for dominance.
Some provinces already have submitted proposals, but Carney did not indicate which, if any, would be greenlit.
The premiers - including Alberta's Danielle Smith, who had been highly critical of former Prime Minister Justin Trudeau - appeared unified after their first meeting with Carney.
Ford said there was "great collaboration" between all leaders, while Smith said she was "encouraged" by Carney's agenda.
But questions remain on whether provinces will find common ground on more contentious projects, like oil and gas pipelines.
First Nations leaders also have expressed concern about Carney's plan, saying they fear it will side-step their land and water rights, and have asked for more clarity on how they will be involved.
US to double tariffs on steel and aluminium imports to 50%, Trump says
Canada will deal with Trump 'on our terms', Carney tells BBC
Faisal Islam: Carney wants to lead a G7 fightback on Trump tariffs

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How Doubling Tariffs on Steel and Aluminum Will Hit U.S. Businesses and Consumers
How Doubling Tariffs on Steel and Aluminum Will Hit U.S. Businesses and Consumers

Time​ Magazine

time16 minutes ago

  • Time​ Magazine

How Doubling Tariffs on Steel and Aluminum Will Hit U.S. Businesses and Consumers

Canned foods, cars, houses, and a range of other goods could soon get more expensive as businesses face a newly doubled tariff rate of 50% for steel and aluminum imports. President Donald Trump described the increase, which raised the levies from the 25% rate announced in February beginning on Wednesday, as an effort to 'further secure the steel industry in the United States' during a Friday rally at a steel mill in Pittsburgh, Penn.—once the heart of the domestic steel industry. But while American steel industry groups have hailed the tariff hike, economic experts have sounded alarms, saying it could further disrupt the already-volatile global supply chain and put more strain on businesses—and Americans' wallets. 'Consumers will have to pay the price,' says Virginia Tech economics professor David Beiri. 'The continued uncertainty that is created by the government is poisoning business plans.' How will steel and aluminum tariff hikes impact businesses? The United States is highly reliant on steel imports, bringing in more of the material from abroad than any other country in the world, according to the International Trade Administration. More than 26 million metric tons of steel were imported last year, most of which came from Brazil, Canada, Mexico, South Korea, and China. 'We are equally dependent on aluminum,' says Jonathan Colehower, managing director at consulting company UST. The domestic steel industry has voiced support for the increased tariffs, saying they will help it weather increased competition from foreign steel manufacturers. 'Chinese steel exports to the world have more than doubled since 2020, surging to 118 million MT in 2024—more than total North American steel production,' the American Iron and Steel Institute, one of several trade associations representing the American steel industry, said in a statement after Trump announced the higher rate. 'This tariff action will help prevent new surges in imports that would injure American steel producers and their workers.' But experts worry about the industry's ability to meet increased demand as businesses, facing the additional import costs, seek cheaper alternatives for their products. While the U.S. once dominated the steel industry, the boom has died down in the last century. 'With domestic capacity not necessarily being able to produce what we might need…there is going to be a transitory effect,' says Beiri, referring to the adjustment period the steel industry will have to navigate as the supply chain changes. Colehower says the domestic steel supply may tighten as a result of the increased tariffs, which could cause domestic prices to rise amid high demand. 'There's absolutely no way it's going to be able to make up the difference immediately,' he says of the domestic steel industry. The Aluminum Association, a trade group that represents both U.S.-based and foreign companies, said it supports tariff-free Canadian aluminum, pointing to the American aluminum industry's reliance on the country's northern neighbor. 'Aluminum is a critical material for our economy and national defense – used in everything from cars to beverage cans to fighter jets. Today, the United States is investing significantly and will need both smelted and recycled aluminum to meet growing demand,' the association said. 'In the years if not decades it will take to build new U.S. smelter capacity, our metal needs must be met by importing.' How will the higher tariffs impact the prices of goods? Steel and aluminum are used in various products, from beer cans and office supplies to automobiles—the prices for all of which are likely to rise as a result of the doubled import taxes. The Can Manufacturers Institute, the trade association of the metal can manufacturing industry, opposed the tariff increase in a statement after Trump announced the coming change in the rate, saying it would 'further increase the cost of canned goods at the grocery store.' The can manufacturing industry imports nearly 80% of its tin-mill steel from foreign countries. 'Doubling steel tariffs will inflate domestic canned food prices, and it plays into the hands of China and other foreign canned food producers, which are more than happy to undercut American farmers and food producers,' the trade association said. Beer companies and other beverage businesses are also set to be impacted. The real estate and construction industries, both of which use steel to build homes, warehouses, and other structures will be footing a bigger bill, as well, Colehower says. He predicts businesses such as Lowe's and Home Depot, the latter of which vowed before the tariff hike that it would not be increasing the cost of its goods, will be severely affected. Farm equipment and transportation vehicles, including cars, bicycles, and others, will also likely cost more as a result of the new tariff rate, Colehower says. Some companies could seek to adjust their business models in the face of increased costs. Coca-Cola CEO James Quincey, for instance, said in February that the company would consider making more beverages in plastic bottles to offset aluminum price hikes under the tariffs announced that month. Negotiations over the tariffs are ongoing between the U.S. and its trading partners, several of which have expressed ire at the increased import taxes. Bea Bruske, president of the Canadian Labour Congress, called the steel tariffs a 'direct attack on Canadian workers.' A European Commission official on Friday said the decision 'adds further uncertainty to the global economy and increases costs for consumers and businesses on both sides of the Atlantic.' The U.K. has been spared from the tariff hike; Mexico announced Wednesday that it plans to ask for a similar exemption. Canada, Mexico, and the European Union were previously exempt from steel and aluminum tariffs Trump imposed during his first term in 2016, but are subject to the current levies.

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