Pressure mounts on Carney to match Trump’s tariffs on steel and aluminum

OTTAWA — Canada’s steel industry is calling on the federal government to quickly match U.S. President Donald Trump’s 50 per cent tariffs on steel and aluminum — part of a growing chorus demanding swift retaliation.

Canadian Steel Producers Association CEO Catherine Cobden said Trump’s tariffs are delivering a crushing blow to the Canadian steel industry.

“At a 25 per cent tariff rate, we saw significant layoffs, curtailed investments and a significant drop of shipments to the United States,” she said in a statement sent to media.

“At a 50 per cent tariff rate, the U.S. market is effectively closed to Canadian steel, leaving billions of dollars of Canadian steel without a market.

“We need urgent action to protect our industry by fully re-instating our retaliatory tariffs on U.S. steel (to) match this latest American escalation.”

Prime Minister Mark Carney said Wednesday that his government will take “some time” to craft its response to the increased U.S. tariffs.

Trump signed an executive order Tuesday to double the levies on steel and aluminum to 50 per cent. He claimed it was necessary to protect national security and industries in the United States.

Carney said Canada is in “intensive” trade discussions with the U.S. about the “unlawful and unjustified” tariffs.

“We will take some time — not much, some time — because we are in intensive discussions right now with the Americans on our trading relationship,” Carney said when asked about his government’s response.

“Those discussions are progressing. I would note that the American action is global action. It’s not one targeted at Canada. So we’ll take some time, but not more.”

Ontario Premier Doug Ford said he told Carney that Ottawa should add another 25 per cent to Canada’s retaliatory tariffs on steel to match Trump’s levies.

“We can’t sit back and let President Trump steamroll us,” Ford said at the Ontario legislature on Wednesday. “We need to act immediately. We can’t just sit back because every single day that goes by, it gives uncertainty to the sectors, it adds additional costs on the steel.”

Ontario is home to six of Canada’s 13 steel plants.

Charles Johnson, president and CEO of the Aluminum Association, which represents aluminum production and jobs in the U.S., said in a statement Wednesday that while re-establishing a “more level playing field” for domestic producers is critical, a tariff of 50 per cent “threatens to undermine the very industry the administration aims to support.”

Johnson said the Aluminum Association urges the administration to reconsider its decision “given the negative impact it will have on manufacturers.”

Industry Minister Mélanie Joly said she has spoken with at least 10 steel and aluminum sector CEOs and knows that many communities are anxious. She said the government will take a moment before it proceeds with any kind of counter-punch.

“We are looking at different scenarios right now and we will make a decision, but we need a bit more time right now. Not too long,” she said.

Interim NDP Leader Don Davies said Carney should act soon because “industry and jobs are at stake.”

“I’m a little bit surprised that Prime Minister Carney needs time. These tariffs have been foreshadowed for some time,” he said. “We need action.”

Canadian Labour Congress president Bea Bruske said the government should meet “force with force” by imposing surtaxes and blocking U.S. steel and aluminum. She called for emergency reforms to employment insurance for laid-off workers.

Canada is a major supplier of steel and aluminum to the United States and economists have warned the tariffs could lead to cost increases for Americans. Both metals are used in a wide range of industries, from construction and the auto sector to the manufacture of products like soup cans and paper clips.

Liberal MPs from steel towns in Ontario were visibly shaken when they entered caucus Wednesday.

MP Lisa Hepfner of Hamilton, a major steel hub, did not mince words when asked about the impact of 50 per cent tariffs.

“Thousands of jobs lost,” she said. “The end of the industry.”

MP Terry Sheehan represents Sault Ste. Marie, where Algoma Steel is located. He said the industry was already struggling under 25 per cent tariffs.

“If industry goes down in northern Ontario, you don’t just lose your job, which is a terrible thing. You lose the equity in your home when those industries shutter,” Sheehan said, although he quickly added that “we’re not there” yet.

Conservative Leader Pierre Poilievre posted on social media that Trump’s move to double tariffs was “wrong and unjustified” and that Canada must “take a strong stance in response to these tariffs that gets a deal as soon as possible.”

Conservative deputy leader Melissa Lantsman called for an emergency debate in Parliament on tariffs.

“For steelworkers who say they are on the verge of collapse, for families who are worried about keeping food on the table or keeping a roof over their head, for businesses that need certainty, Liberal ministers need to answer to this House,” Lantsman said on the Commons floor shortly after question period on Wednesday.

House Speaker Francis Scarpaleggia denied the request, saying he didn’t believe it met the criteria for an emergency debate under the House rules.

— With files from Kelly Geraldine Malone in Washington, Allison Jones in Toronto and The Associated Press

This report by The Canadian Press was first published June 4, 2025.

David Baxter and Kyle Duggan, The Canadian Press