Canada is preparing to announce long-awaited support measures for its aluminium, steel and agricultural sectors, as trade frictions with the United States intensify. Industry Minister Melanie Joly commented that targeted relief for aluminium companies will be rolled out soon in the following days. The package aims to cushion producers against the uncertainty created by US tariffs. She added that Ottawa would also back the steel sector as it seeks to pivot away from US markets, though specifics were not revealed.
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In parallel, Prime Minister Mark Carney’s office confirmed that canola farmers, who were hit by Chinese tariffs, will soon see fresh support. According to news sources, Ottawa could reveal a set of major announcements as early as Friday, focusing on economic and industrial competitiveness.
Escalating tariff war
The aid comes amid an escalating tariff war that has dragged on for six months. Despite reports of “intense” negotiations, a comprehensive U.S.-Canada trade agreement is not yet within reach. On 31 July 2025, Ottawa’s chief negotiator cautioned that a potential deal may still take several weeks to materialise.
The situation worsened when President Trump raised tariffs on Canadian imports from 25 per cent to 35 per cent, following the collapse of an early August deadline. Canadian Trade Minister Dominic LeBlanc admitted progress was limited, “At the end of business yesterday, that agreement was not yet in sight … There remain sectors the Americans are targeting which are essential for the Canadian economy.”
Carney has stressed that Trump’s tariffs have disrupted long-standing economic and security ties, while Washington has linked its stance to fentanyl smuggling concerns and Canada’s refusal to drop retaliatory measures.
The aluminium industry, vital to Canada’s exports, faces mounting pressure as negotiations stall. With more than 90 per cent of Canadian goods still entering the US duty-free, the new tariffs specifically squeeze critical industries like aluminium, steel, and other sectors.
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