FX.co ★ Canada Plans Aid for Tariff-Hit Sectors as U.S. Talks Continue

Canadian Prime Minister Mark Carney announced on Tuesday that financial assistance programs are being developed for sectors severely impacted by the steep U.S. tariffs, with potential implementation as soon as next month, contingent upon the results of ongoing trade negotiations. Canada has already pledged support for employees in the automotive and steel industries, subjected to U.S. tariffs of 25% and 50%, respectively. Carney mentioned that aid for the aluminum industry, primarily located in Quebec and also enduring 50% tariffs, is under consideration. Additionally, there is potential support for the forest-products, copper, and pharmaceutical sectors, as the U.S. has warned of additional tariffs on these industries if a resolution is not reached by the August 1 deadline. Although some tariffs may persist despite the negotiations, Carney stressed that Canada will only agree to terms that bolster its economy. "A favorable agreement," he stated, "would acknowledge and enhance the interconnected U.S.-Canadian supply chains," especially within the automotive sector.