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Canada and U.S. tariffs on steel and aluminum intensify supply-chain risk
Canada says counter-tariffs in steel and aluminum will rise from 25.0% to 50.0% to match U.S. rates, effective August 22, with additional retaliation set for September 8.
OilPrice reports that the renewed U.S.-Canada trade conflict is adding uncertainty to steel and aluminum supply chains that support heavy manufacturing and North America’s automotive industry.
According to OilPrice, after trade talks broke down, the United States imposed tariffs on $20 billion worth of Canadian goods, including alcohol, hockey sticks, cement, and machinery.
OilPrice adds that Canada retaliated by announcing counter-tariffs taking effect September 8 across multiple sectors, including steel and aluminum, dairy, appliances, agricultural equipment, pulp and paper, and electronics.
OilPrice further reports that Canada said existing counter-tariffs in steel and aluminum will increase from 25.0% to 50.0% effective August 22, dollar for dollar with U.S. rates, and that supply chains are intertwined enough that businesses may effectively pay tariffs multiple times when materials cross the border repeatedly.