Canada Tariffs Deepen North America’s Steel and Aluminum Squeeze
The renewed trade war between the United States and Canada adds even more uncertainty to the complex steel and aluminum supply chains critical for heavy manufacturing and North America’s automotive industry. Last week’s breakdown in trade talks led to a quick escalation of tariffs and counter-tariffs, which the two close trading partners announced on each other’s imports.
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Key Facts
- Fact 1: imposed tariffs on $20 billion worth of Canadian goods, including alcohol, hockey sticks, cement, and machinery, to name a few.
- Fact 2: and Iran Exchange Strikes Canada retaliated by announcing counter-tariffs to come into effect on September 8 on sectors including steel and aluminum, dairy, appliances, agricultural equipment, pulp and paper, and electronics.
- Fact 3: “In certain sectors, such as steel and aluminum, existing counter-tariffs will increase from 25 per cent to 50 per cent to match U.S.
- Fact 4: tariffs – effective August 22 – dollar for dollar.
The renewed trade war between the United States and Canada adds even more uncertainty to the complex steel and aluminum supply chains critical for heavy manufacturing and North America’s automotive industry. Last week’s breakdown in trade talks led to a quick escalation of tariffs and counter-tariffs, which the two close trading partners announced on each other’s imports.
The trade war escalation will hit trade in key metals such as steel and aluminum and force producers and importers to seek longer-term solutions to the heightened uncertainty about the cost of materials supply. There won’t be a clear winner in this new trade escalation, as supply chains are so complex and intertwined that businesses on either side of the U.S.-Canada border may have to pay tariffs multiple times because many materials and products physically cross the border multiple times, analysts say. After trade negotiations broke down, the U.S.
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