Canada Postpones Retaliatory Tariffs on US Steel and Aluminum Imports

Canada has postponed plans to impose retaliatory tariffs on US steel and aluminum imports after President Donald Trump sent a letter extending the deadline for trade negotiations between the two North American neighbors, though he also threatened to impose higher tariffs.

Politico reported that Mark Carney’s government was preparing to double its countervailing tariffs on US metals on July 21, from 25% to 50%, but Trump’s letter pushed the prime minister away from that goal.

Two senior government officials said Canada will not take any further retaliatory action against US steel and aluminum imports on July 21, the previous deadline for talks, after the two sides agreed to extend the deadline for negotiations on a new economic and security agreement to August 1.

Canada’s current 25% countervailing tariffs on US steel and aluminum imports will remain in place during the negotiations. But if an agreement is not reached by the new deadline, both sides threaten to increase and expand their tariffs on the other’s goods.