LeBlanc Aims to Advance Steel, Aluminum Tariff Relief Ahead of USMCA Review
Canada’s trade minister, Dominic LeBlanc, is focused on advancing discussions regarding tariff relief for steel and aluminum. His goal is to reduce or eliminate the United States tariffs on these critical sectors before the upcoming review of the United States-Mexico-Canada Agreement (USMCA) in 2026.
Leverage in Trade Negotiations
During a Senate foreign affairs committee meeting, LeBlanc expressed optimism about reaching a deal with the U.S. He believes Canada still holds leverage in negotiations despite having previously eliminated retaliatory tariffs and the digital services tax that had sparked tensions with the Trump administration.
“Some challenges will remain for some time,” said LeBlanc, indicating ongoing issues. He highlighted domestic U.S. pressure as a significant factor favoring Canada’s position. American companies dependent on Canadian steel and aluminum could advocate for tariff reductions.
U.S. Tariffs on Canadian Products
Currently, the U.S. imposes extensive tariffs affecting Canadian exports. This includes:
- 50% tariff on steel and aluminum
- 25% tariff on automobiles
- 10% tariff on Canadian softwood shipments, raising the total levies over 45%
LeBlanc emphasizes that it is in the U.S. national interest to maintain a robust Canadian steel and aluminum industry, particularly as these materials support the U.S. defense sector. He noted the inflationary pressures faced by companies like Ford Motors, which require Canadian aluminum for their vehicle production.
Protection of Canadian Industries
In a separate discussion, LeBlanc reassured a House of Commons committee that Canada will not compromise its supply management system, which protects various local industries, including dairy. He reaffirmed that there would be no increase in dairy quotas, despite pressures for U.S. product access.
Negotiation Context and Upcoming Review
As the U.S. and Canada prepare for the 2026 USMCA review, LeBlanc highlighted the need to address contributions from the U.S. towards easing tensions. He mentioned that Canadian exports compliant with USMCA would be exempt from the tariffs initially proposed under the Trump administration.
LeBlanc clarified that no discussions have occurred regarding merging sectoral tariff negotiations into the USMCA review. He remains hopeful for progress before the formal review commences.
Conclusion
As trade negotiations continue, LeBlanc’s strategies aim to enhance Canada’s position regarding steel and aluminum tariffs. He underscores the importance of collaboration between Canada and the United States, aiming for a more favorable trade relationship in the near future.
