Ottawa is asking recipients of federal grants to switch to using Canadian steel and aluminum instead of U.S. products after the United States implemented 25 percent tariffs on the materials.
In a letter sent to funding recipients on March 17, Industry Minister Anita Anand requested that Canadian steel and aluminum be used “wherever relevant and possible” in response to the U.S. tariffs introduced on March 12.
“Today, it is the steel and aluminum industries in Canada that are being targeted; tomorrow, it could be others,” Anand wrote. “It is only by banding together now that we can protect Canadian industries and grow our economy.”
In the letter, Anand said that Ottawa’s initial decision to grant the funding is a “testament to the value the government saw in your project or ecosystem for the Canadian economy,” and that all Canadians are now expected to “do more.”
The United States implemented 25 percent steel and aluminum tariffs on all countries on March 12, which prompted Ottawa to launch retaliatory tariffs targeting CA$29.8 billion in U.S. goods. The retaliatory measures targeted items like steel products, computers, and sports equipment with a 25 percent surtax.
Canada is the largest provider of U.S. steel and aluminum, and 40 percent of Canada’s steel imports comes from the United States, with trade between the two countries amounting to $20 billion per year. For aluminum, Canada represents 75 percent of U.S. imports.
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In total, the two sectors employ 150,000 workers across Canada. The country’s steel production is centred in Hamilton, Ont., while Quebec is the leader for aluminum.
Ontario Premier Doug Ford announced on March 10 that he would be applying a 25 percent surcharge on electricity exports to the American states of Michigan, Minnesota, and New York. In response, U.S. President Donald Trump threatened to double tariffs on Canadian steel and aluminum to 50 percent.
Following a phone call with U.S. Commerce Secretary Howard Lutnick on March 11, Ford announced he was suspending the surcharge on electricity after the two agreed to meet in Washington to discuss the tariffs. Trump said the same day he would not go ahead with 50 percent tariffs on steel and aluminum, keeping them at 25 percent.
During Trump’s first presidential term in 2018, he also imposed tariffs on Canadian steel and aluminum, with Canada responding in kind. The two countries agreed to lift the barriers almost a year later after coming to an agreement to crack down on dumping and transshipment by other countries.
