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Canada Vows to Protect Metals Sector

Canada promises to do all it could to protect its steel and aluminum sectors from U.S. tariffs but sidestepped an industry call to strike back quickly, saying it needed time to study the issue.

President Donald Trump's administration last week imposed U.S. tariffs of 25% on steel and 10% on aluminum from Canada - the number-one steel exporter to the United States - as well as on Mexico and the European Union.

Prime Minister Justin Trudeau later met steel executives and said: "We are going to stand up for our workers."

In June 2017, Ottawa announced a $867-million package for softwood lumber producers hit by U.S. tariffs, and officials said they were looking at similar measures.

Canada retaliated against the latest punitive measures last week by proposing levies on $16.6 billion worth of U.S. exports to come into effect on July 1.

Canadian Steel Producers Association President Joseph Galimberti said producers had not asked the federal government for financial help at the Ottawa meeting but instead pressed for the countermeasures to be imposed as quickly as possible.

Trudeau later made clear he was in no hurry, telling legislators in the House of Commons that Ottawa wanted to carry out public consultations on the proposed retaliatory tariffs to make sure they were appropriate.

Trade Minister Francois-Philippe Champagne told reporters in Montreal that the government would study the impact of the U.S. tariffs before offering specific aid.

Canada sent 84% of its steel exports, worth $9 billion, south last year, according to Statistics Canada.

The sector accounts for about 22,000 direct jobs and supports 100,000 jobs indirectly, Galimberti's association said.

Trade ties between Canada and the United States have soured since Trump took office in January 2017. The tension spilled over into talks to update the three-nation North American Free Trade Agreement, which have effectively stalled.