Canadian Prime Minister Mark Carney announced Thursday that Canada could increase counter-tariffs on US steel and aluminum if a broader trade deal isn't reached with the US by July 21. This comes after the US raised import duties on these metals to 50% earlier this month, impacting Canada, a major supplier.

Carney stated existing counter-tariffs, currently 25% on certain steel and aluminum products, will be adjusted based on progress in trade talks. Canada will also implement new procurement rules favoring Canadian producers and tariff-free trade partners for federal steel and aluminum projects.

Additionally, new tariff-rate quotas of 100% of 2024 levels on steel imports for non-free trade agreement partners will be established to stabilize the domestic market and prevent harmful trade diversion.

According to data, Canada ships more than 90% of its steel and aluminum exports to the US, making the trade relationship critical.