FX.co ★ Canada Responds to U.S. Tariffs With Sectoral Support Package

Canada has unveiled plans to introduce financial assistance for domestic producers affected by U.S. tariffs, specifically targeting the steel, aluminum, and automotive sectors. The U.S. has imposed a 50% tariff on steel and aluminum and a 25% duty on Canadian-assembled vehicles. Industry Minister Melanie Joly emphasized the government's commitment to supporting these sectors, with further announcements anticipated. Prime Minister Mark Carney pointed out that current discussions with the U.S. are heavily focused on these industries due to the deep integration of supply chains. Trade Minister Dominic LeBlanc described the tariffs as causing "enormous economic hardship" after discussions with U.S. Commerce Secretary Howard Lutnick. Despite being the leading U.S. supplier of steel and aluminum, Canada has seen its aluminum exports decline for four consecutive months, hitting their lowest since May 2019. More than 90% of Canadian auto exports are destined for the U.S., with recent figures showing a 25% drop in shipments since March.