Today, the Deputy Prime Minister, Chrystia Freeland, issued the following statement on the decision by the United States to impose tariffs on certain aluminum products from Canada:
“The August 6th announcement by the United States to impose tariffs on certain Canadian aluminum products, citing national security concerns, is unwarranted and unacceptable.
“Canadian aluminum does not undermine US national security. Canadian aluminum strengthens US national security and has done so for decades through unparalleled cooperation between our two countries. Canada is a reliable supplier of aluminum for American value-added manufacturers. Aluminum trade between Canada and the US has long been mutually beneficial economically for both countries, making the North American aluminum industry as a whole more competitive around the world.
“In the time of a global pandemic and an economic crisis, the last thing Canadian and American workers need is new tariffs that will raise costs for manufacturers and consumers, impede the free flow of trade, and hurt provincial and state economies.
“Further, with the new NAFTA having come into force on July 1st, now is the time to advance North American economic competitiveness — not hinder it. Through robust, new rules of origin for automobiles, the new NAFTA ensures 70 per cent of the aluminum purchased by North American automakers is produced in North America.
“Canada’s innovative aluminum industry provides approximately 10,000 well-paying direct jobs in primary aluminum production and supports tens of thousands more in related downstream sectors. The Government of Canada will always stand up for our aluminum workers across the country. We did so when the US imposed aluminum tariffs in 2018 and we will stand up for them again now. I know we can once again count on a Team Canada approach as we confront these unjustified tariffs on Canadian aluminum.
“In response to the American tariffs, Canada intends to swiftly impose dollar-for-dollar countermeasures.”
- Further information on Canada’s countermeasures will be announced shortly.
- Every day, nearly US$2 billion worth of goods and services crosses the Canada-US border. In 2019, this amounted to more than US$721 billion in goods and services exchanged between our countries.
- Through robust, new rules of origin for automobiles, the new NAFTA ensures that 70 per cent of the steel and aluminum purchased by North American automakers is produced in North America in order for a vehicle to qualify for duty-free treatment. This provides a competitive advantage for our steel and aluminum workers by ensuring privileged access for Canadian steel and aluminum.
- Canada is the world’s fourth largest aluminum producer, with 2.8 million metric tonnes produced in 2019.
- Canadian aluminum has the lowest carbon footprint compared to other large producers.
- Canada and the United States share a highly integrated aluminum market. Combined bilateral trade in primary and semi-finished aluminum products between 2017 and 2019 averaged C$11.1 billion annually.
- Of more than 162,000 US aluminum industry jobs in mid-and-downstream production, processing, and recycling, 97 per cent depend on a mix of US and imported primary aluminum, mainly from Canada.
- Notice of intent to impose countermeasures against the United States in response to tariffs on Canadian aluminum products
- Joint Statement by Canada and the United States on Section 232 Duties on Steel and Aluminum
- Government Takes Further Steps to Protect Canada's Steel and Aluminum Workers and Industries
- Canada Bolsters Prevention of Transshipment and Diversion of Steel and Aluminum Products Through Country of Origin Marking Regime