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Carney says that Canada could increase its duties on US aluminum and steel

Mark Carney, the Prime Minister of Canada, said that Canada may increase its counter-tariffs against U.S. steel and aluminum if a broader deal is not reached with President Donald Trump in 30 days.

Trump raised import duties on aluminum and steel to 50%, up from 25% in early February. The industry demanded an official response. Trump's decision could harm Canada, the U.S.'s largest metals supplier.

Carney said that he agreed with Trump on Monday that both nations should work to conclude a new security and economic deal by the 21st of July.

Carney said at a press briefing that Canada would adjust its counter-tariffs against U.S. aluminum and steel products on the 21st of July to reflect the progress made under the larger trading agreement between the United States.

Carney did not immediately match Trump's tariff hike in June, saying that he wanted to make progress in the talks to establish a new economic relationship and security.

On March 13, Canada imposed 25% of retaliatory duties on a list steel products valued at C$12.6 Billion and aluminum products valued at C$3 Billion.

In an announcement made on Thursday, Canada announced new rules for procurement, which will allow Canadian producers and their trading partners with tariff-free access to compete in federal procurements.

Carney stated that Canada would set new tariff-rate quotas at 100% of the levels in 2024 for imports of steel from non-free-trade agreement partners, "to stabilize and prevent harmful trade divergence."

According to the Royal Bank of Canada (RBC), Canada exports over 90% of all its steel and aluminum to the U.S. It also consumes around a fifth of the U.S. steel exports and about 50% of the aluminum exports. This highlights the importance of the metals trade between these two countries.

Carney has also announced a number of infrastructure projects, ranging from oil and gas pipelines, to the doubling of housing capacity, all of which require tons of aluminum and steel.

Carney, in response to questions from the press, said: "We are united on working towards all forms of assistance for the industry... and that begins with purchasing Canadian steel and aluminium for federal projects."

The government will use Canadian steel and aluminium in Canadian products as part of its new measures. It will also create a taskforce to monitor the evolution of the steel and Aluminum markets under the tariff regime. (Reporting and editing by Rod Nickel; David Ljunggren, Andrea Ricci, and Rod Nickel)

(source: Reuters)