Trump promises big tariffs on steel, aluminum

U.S. President Donald Trump has declared his intention to impose sweeping tariffs on steel and aluminum, with potentially wide-ranging implications for the global economy, the international trading system and cross-border commerce.

After a suspense-filled few weeks the president released some details about his plans Thursday: a 25 per cent tariff on steel, and a 10 per cent tariff on aluminum, numbers in both cases higher than expected.

“We’ll be signing it next week,” Trump told a gathering of industry leaders. “And you’ll have protection for a long time.”

One major unknown lingers: Whether Canada is on the list. While the tariffs are primarily billed as targeting China, the numbers Trump cited sound ominously similar to what had been billed as the worst-case scenario for Canada: his administration had said it was contemplating a massive global tariff on a few countries that sell dumped steel, or something around 24 per cent for the entire world.

Canada is the No. 1 supplier of both steel and aluminum to the U.S. Trump technically has until next month to make a decision. But he was eager to impose the broadest possible tariffs, and itching to make an announcement. News reports claimed the administration was scrambling behind the scenes, trying to get the details finalized, with some officials urging him to put off a decision.

The Pentagon has published a letter urging him not to target allies. During consultations, witness after witness urged the government to make a special exception for Canada. The well-connected United Steelworkers union has members in both countries — it’s even led by a Canadian, Leo Gerard, who is urging the administration to leave his home and native land alone.

“To put Canada in the same boat as Mexico, or China, or India, or South Korea ... doesn’t make sense,” Gerard said. “Canada should just be excluded - period. We have an integrated economy. And if it gets undone, America will pay a heavy price .... In every opportunity I’ve had I’ve tried to point out to the key decision-makers that Canada is not the problem when it comes to international trade - and to do something that would sideswipe Canada would disadvantage (the U.S.).”