The countdown has begun. Canada is preparing to raise tariffs on “durable materials“ coming from the United States if no concrete steps toward a bilateral trade agreement are taken by July 21. The announcement was made by Canadian Prime Minister Mark Carney, on the sidelines of the recent G7 summit held in Alberta, where he held direct talks with U.S. President Donald Trump.
According to Carney, both leaders agreed on the urgency of reaching an agreement within the next 30 days. Failing that, Ottawa is ready to introduce “calibrated countermeasures” to protect national workers and businesses, starting with an increase in the current tariffs on strategic metal imports from the United States.
The Prime Minister emphasized that Canada will not remain passive in the face of aggressive trade tactics. He explained that any future action will be proportional to the progress made in negotiations. He reiterated his government’s determination to firmly defend the domestic economy, highlighting the need to strengthen the resilience of the national production system and prepare for possible negative impacts from U.S. tariff measures.
There has been no shortage of criticism toward the Republican administration’s strategy, accused of triggering an economic escalation that could lead to global recessionary effects. Carney, who previously headed both the Bank of Canada and the Bank of England, warned of the risk of “a full-scale trade war” in an international context already strained by volatile commodity prices and geopolitical instability.
The U.S. tariffs of up to 50% on both light and heavy alloys, 25% on automobiles, and a general 10% import tax, are also hitting Mexico hard, despite the 2020 North American trade agreement. Washington has justified the harsher measures as necessary to stop illicit trade, such as the trafficking of fentanyl, but for Canada these are seen as unacceptable obstacles to fair and free trade.
Canada is the leading supplier of steel, aluminum, and uranium to the United States and is considered a vital economic partner. Each day, over 3.6 billion Canadian dollars (2,7 billion U.S. dollars) worth of goods and services cross the border, and Canada also represents the top export market for 36 U.S. states.
Carney stressed the importance of stabilizing relations with the neighboring state and noted that “direct and reliable access to the U.S. market is crucial to the economy.” However, he refrained from committing to the possibility of signing any agreement if current tariffs remain in place.
