Ever since the latest round of steel and aluminium tariffs went into place, there have been questions as to when and how Canada will respond, and earlier in the week, prime minister Mark Carney counselled patience and that there were “intensive negotiations” happening, but retaliatory measures were also being prepared. We found out yesterday that Carney and Trump have been having back-channel conversations on the subject, so retaliation while this is happening may be counter-productive. But you also have industry worrying that the longer this goes without retaliation, the more they become vulnerable to other things like steel imports from other countries being diverted to Canada, which could make their situation even worse.
That being said, we may not be able to eliminate all tariffs, and some level could remain because Trump does love tariffs, and has a completely wrong-headed notion about them because of the people he has been surrounding himself with. Never mind that our auto sector can’t survive with tariffs, or that the Americans will simply pay through the nose for aluminium that they can’t smelt themselves.
Meanwhile, the Star has a really good five-point explainer about the counter-tariffs, and why the Conservatives’ claims that they were “secretly removed” is false, but rather a certain number of counter-tariffs were suspended for six months to give Canadian companies time to adjust supply chains, but there are still plenty of counter-tariffs in place.
Ukraine Dispatch
There was another missile and drone attack overnight which hit Kyiv, has killed at least four people.