Canada Responds to U.S. Tariffs With Sectoral Support Package

Canada announced plans to roll out financial aid for domestic producers impacted by U.S. sectoral tariffs, particularly in steel, aluminum, and automobiles. Steel and aluminum face a 50% tariff, while Canadian-assembled vehicles are hit with a 25% duty. Industry Minister Melanie Joly said, “We’re really working on supporting these sectors, and there’s more news to come.” Prime Minister Mark Carney noted that negotiations with the U.S. are now centered on these industries, citing deep supply-chain ties. Trade Minister Dominic LeBlanc called the tariffs “enormous economic hardship,” following talks with U.S. Commerce Secretary Howard Lutnick. Canada remains the top U.S. supplier of steel and aluminum; however, aluminum exports have fallen for four consecutive months, reaching their lowest level since May 2019. Over 90% of Canadian auto exports are sent to the U.S., with recent data indicating a 25% decline in shipments since March.