Trump doubles metals tariffs, Carney tight lipped on Canada’s response

U.S. President Donald Trump has increased tariffs on steel and aluminum imports from 25 per cent to 50 per cent.

The presidential proclamation went into force at 12:01 a.m. EDT Wednesday. In that document, Trump said the new rate would better counter “foreign countries that continue to offload low-priced, excess steel and aluminum,” undercutting the U.S. market.

Ottawa called the additional levies “unlawful and unjustified.” About a quarter of all steel used in the United States is imported and Canada is its largest supplier.

Here’s what happened throughout the day:

6 p.m. EDT: Canadian businesses who rely on steel and aluminum grappling with tariff hike

For the Laplante family, steel has been their business for close to a century.

As manufacturers of steel roofs and siding, as well as a supplier of products such as steel coils, screws, and sheet metal for HVAC and construction companies, U.S. President Donald Trump’s doubling of tariffs on steel and aluminum is impacting their business directly.

“We can’t swallow a 50 per cent increase, and the customers in the U.S. won’t pay 50 per cent more for the same product,” said Ideal Roofing CEO Claude Laplante. “We’ve been working hard at developing an American market for the last 50 years… We’ve had trucks going into the U.S. every week, twice a week, three times a week, and now that’s all going to stop.” The company tries to source as much as they can domestically, though with more than 300 Canadian workers on the payroll and sales decreasing, the worry is there.

“We’ve always been… a proud supporter of Canadian steel, buying Canadian steel, employing, keeping the jobs in Canada. That’s going to be deeply affected,” said his son, Philippe Laplante, the company’s vice-president of sales and marketing.

Brewers across the country are also feeling crushed, by the rising cost of aluminum cans.

Among them, Ottawa’s Dominion City Brewing Co. After stockpiling more affordable cans before the tariffs took hold, co-owner Josh McJannett says the cost of supplies is gradually increasing. “The fear is that, you know, come fall, when a lot of the stores of inventory that our own suppliers had stocked up on, run out we’re going to be taking significant price increases on a lot of these things.”

“There’s a lot of upward pressure for a small business like ours,” he said. “The things we use to make our product are just all kind of getting more expensive.”

McJannett said while they’ve been trying to absorb the costs rather than pass them on to consumers, but they still need to ensure business sustainability. He’d like to see governments adjust policies that could offer some relief, such as making permanent the reduced rates of excise duty on beer brewed by domestic brewers.

“Our urgent call is while all of these things are happening that are accelerating our costs, I think that it’s all the more important that we are grabbing those levers that we can control. And I think some of those calls around excise tax, other things we can do that can make our businesses more competitive, those are the places to start.”

Rachel Aiello, National correspondent & Noah Watcher, CTV National producer

3:45 p.m. EDT: Canada should meet ‘force with force’: Labour group

Canadian Labour Congress president Bea Bruske says the government should meet “force with force” by imposing surtaxes and blocking U.S. steel and aluminum. She called for emergency reforms to employment insurance for laid-off workers.

“We cannot back away form this,” Bruske told a joint press conference on Parliament Hill with the Federation of Canadian Municipalities and the Canadian Chamber of Commerce.

She said Trump is “not rational in terms of thinking about what the implications are.”

The Canadian Press

3 p.m. EDT: Joly says Canadian response coming soon

Industry Minister Melanie Joly was asked why the government hasn’t announced counter tariffs in response to Trump’s increase.

She said she and her colleagues are reviewing a variety of options, and that they need more time, “but not much,” to decide on the best path forward.

Canada has already placed counter tariffs on a gamut of U.S. goods, she noted, adding Ottawa’s eventual response must impose “maximum pain” on the U.S. while inflicting “minimum impact” on Canadians.

Meanwhile, she said, Canada will invest in military and infrastructure projects to create more jobs in the steel and aluminum sectors.

Luca Caruso-Moro, CTVNews.ca journalist.

2:30 p.m. EDT: Canada preparing possible reprisals against U.S. over tariffs: Carney

Canada is prepared to strike back against the United States if talks with Washington to remove U.S. President Donald Trump’s tariffs did not succeed, Prime Minister Mark Carney said on Wednesday.

“We are in intensive negotiations with the Americans, and, in parallel, preparing reprisals if those negotiations do not succeed,” he told the House of Commons.

Reuters

2:05 p.m. EDT: NDP will vote no on throne speech: Davies

Don Davies, interim leader of the NDP, told reporters ahead of Question Period that his party’s caucus met today and will be voting no on the throne’s speech, which will be voted on Wednesday evening.

Davies also said that Trump’s tariff, which went into effect today, is a “reckless move.”

As part of the swift measures the NDP are hoping the federal government will take, Davies says the party wants to make the use of Canadian steel mandatory in all Canadian infrastructure projects.

Lynn Chaya, CTVNews.ca journalist.

12:54 p.m. EDT: Conservatives call for emergency debate on tariffs

Conservative MP Melissa Lantsman will ask Speaker of the House of Commons Francis Scarpaleggia to grant “an emergency debate” on Trump’s increased tariffs that went into effect today.

“The Liberal government has failed to get a deal with the United States on tariffs, after Prime Minister Carney campaigned on ‘being the man with the plan,’” Lantsman wrote in her letter.

“Since he took office and visited the White House, the Prime Minister and the Liberal government have failed to exempt Canadian steel and aluminum from Trump’s unjustified tariffs.”Lantsman will request the debate during today’s sitting.

Lynn Chaya, CTVNews.ca journalist.

12 p.m. EDT: Canada should halt strategic metals exports to U.S.: union

Canada must match Trump’s 50 per cent metals tariffs, halt strategic metals exports to the U.S. and block companies from relocating Canadian jobs in response to U.S. pressure.

That’s according to Unifor, Canada’s largest private sector union, which released its list of demands to the Carney government following Trump’s tariff escalation.

The union also wants Ottawa to implement new rules at the border to prevent “unfairly traded or dumped” foreign steel and aluminum from entering Canada.

“This is about economic sovereignty. Canada must respond with strength and urgency,” said Unifor national president Lana Payne.

“If we don’t defend our industries now, we risk losing them for good.”

Luca Caruso-Moro, CTVNews.ca journalist.

11:30 a.m. EDT: Ford asked Carney to match U.S. tariffs

Ontario Premier Doug Ford said that he has “directly” asked Prime Minister Mark Carney to double Canada’s retaliatory tariff on steel and aluminium from 25 per cent to 50 per cent in lockstep with the latest move by the White House.

The premier made the remark during an interview with CNN.

He said the United States’ increased tariffs on aluminum and steel amount to a “$4 billion tax on American products that have steel in them.” He believes the tariffs will ultimately result in significant job losses in the U.S. as countries like Canada seek to reduce the amount of steel they are purchasing from the U.S. in response.

“This is going to cost not only the $4 billion; it is going to cost $30 billion of business, which is equal to tens of thousands of steelworker jobs,” Ford said.

Canada must also be prepared to turn its back on U.S. steel manufacturers entirely, Ford stressed.

“Canada is not the problem. We purchase $30 billion of steel from the U.S. and that is going to come to an end real quick,” he warned.

Chris Fox, managing digital producer, CTVNewsToronto.ca

11 a.m. EDT: Canada has been resilient to tariffs, at least for now: BoC

Bank of Canada Governor Tiff Macklem described Trump’s tariffs as the economy’s “biggest headwind,” adding the country is weathering a period of “global upheaval.”

Macklem made the remark during a news conference in Ottawa on Wednesday after announcing the central bank would hold its key interest rate.

He said Canada’s economy has shown resilience to tariffs in recent months, noting the country logged a bump in GDP in the first quarter.

That being said, the unemployment rate also rose to 6.9 per cent in April. And while employment held up better in sectors less exposed to trade, Macklem remarked, the longer tariffs persist, “the more it’s going to weigh on the economy.”

Businesses are having to spend more to find new export markets as the United States looks inward for trade. And the effects of Canada’s retaliatory tariffs are not yet reflected in the central bank’s economic data, said Macklem.

As a result, the Bank of Canada is “being less forward looking than usual,” he said.

Luca Caruso-Moro, CTVNews.ca journalist.

10:38 a.m. EDT: Ontario mayor: ‘Half of our community relies on the steel plant’

Trump’s newly doubled tariffs on steel are causing “anger and anxiety” in Sault Ste. Marie, Ont., the border city’s mayor says.

In an interview with CTV Your Morning Wednesday, Mayor Matthew Shoemaker said Sault Ste. Marie’s economy depends on steel – a product that Trump has made “uneconomic to sell” with the stroke of a pen.

“Half of our community relies on the steel plant, either directly or indirectly,” he said.

The mayor is calling on the federal government to bring forward a “concrete plan” within the next two weeks, either to buy or stockpile more steel from Canadian suppliers, or to support workers directly.

“Negotiating a resolution to this with the U.S. is not going to happen within the next couple of weeks, but there is the prospect of job losses within the next couple of weeks,” he told CTV.

“It’s harder to rebuild a steel plant, or to recreate a manufacturing industry, than it is to support the one you’ve got.”

Charlie Buckley, CTVNews.ca journalist.

10:20 a.m. EDT: Carney won’t say if Canada will retaliate

Prime Minister Mark Carney won’t yet say how or if Canada plans to retaliate against Trump’s tariff doubling.

Beyond calling the latest trade action “unjustified,” “illegal” and bad for workers and industries on both sides of the border, Carney had little to say about next steps on his way in to a caucus meeting on Parliament Hill Wednesday.

“We have counter tariffs in a gross amount before remissions on over $90 billion of U.S. imports. We’ve acted strong. Those are in place,” the prime minister said.

“We will take some time, not much, some time, because we are in intensive discussions right now with the Americans on the trading relationship,” Carney continued. “Those discussions are progressing. I would note that the American action is a global action, it’s not one targeted at Canada, so we will take some time, but not more, before responding.”

Rachel Aiello, CTV News national correspondent

9:55 a.m. EDT: Wall St. drifts up

Another drift higher for U.S. stocks on Wednesday is pushing Wall Street even closer to its record following its big recent rally.

The S&P 500 was up 0.3 per cent in early trading and pulled within 2.5 per cent of its all-time high. The Dow Jones Industrial Average was up 94 points, or 0.2 per cent, as of 9:35 a.m. EDT, and the Nasdaq composite was 0.3 per cent higher.

Hewlett Packard Enterprise helped lead the way and rose 4.1 per cent after delivering a stronger profit for the latest quarter than analysts expected.

Wells Fargo rose 2.8 per cent after the Federal Reserve on Tuesday lifted restrictions placed on the bank in 2018 for having a toxic sales and banking culture. Wells Fargo has spent the better part of a decade trying to restore its image with the public and convince policymakers that it had changed its ways.

The action was stronger in the bond market, where Treasury yields fell after a report suggested U.S. employers outside of the government hired far fewer workers last month than economists expected.

The Associated Press

‘Unlawful and unjustified’: PMO responds

In a statement to CTV News Tuesday night, the Prime Minister’s Office (PMO) called the additional tariffs on steel and aluminum “unlawful and unjustified.”

“Canada’s new government is engaged in intensive and live negotiations to have these and other tariffs removed as part of a new economic and security partnership with the United States,” the statement said.

“We are fighting to get the best deal for Canada, and we will take the time necessary, but no longer,” the PMO said.

Lynn Chaya, CTVNews.ca journalist, and Stephanie Ha, Ottawa News Bureau journalist. Read the full story here.

Moving energy from Eastern Canada

A plan to generate and transmit energy from Eastern Canada to other markets has been prioritized as a “nation-building” project, following a meeting with the premiers and Prime Minister Mark Carney.

The Eastern Energy Partnership would link hydro and wind power from Atlantic Canada and Quebec to destinations in Western Canada and U.S. states in New England.

An initial cost of $8 billion has been tagged for transmission infrastructure.

Nova Scotia Premier Tim Houston said a portion of the plan, dubbed “Wind West,” would send energy from the province’s offshore wind zones via a transmission cable.

“Nova Scotia’s Wind West project can produce enough energy that is the equivalent of powering up to 27 per cent of the country’s needs,” said Houston in a social media video post Monday evening.

Nick Moore, CTVNewsAtlantic.ca journalist. Read the full story here.

Carney: Chinese tariffs a ‘top priority’

The federal government plans to work urgently to remove Chinese tariffs on Canadian agriculture and seafood products, Carney said Monday.

“The Canadian government is engaging with its Chinese counterparts at the ministerial level, and we’ll continue those discussions,” Carney told reporters after meeting with premiers in Saskatoon.

“They’re a top priority for us.”

The commitment, which came in a statement after the meeting, says premiers want Canada’s trading relationship with China to improve.

The Canadian Press. Read the full story here.

U.S. and Europe discuss tariffs in Paris

Europe and the United States are meeting in Paris to negotiate a settlement of a tense tariff spat with global economic ramifications between two global economic powerhouses.

The European Union’s top trade negotiator, Maroš Šefčovič, met Wednesday with his American counterpart, U.S. Trade Representative Jamieson Greer, on the sidelines of a meeting of the Organization for Economic Cooperation and Development.

“We’re advancing in the right direction at pace — and staying in close contact to maintain the momentum,” Šefčovič posted on social media platform X alongside a photo of him shaking hands with Greer.

Brussels and Washington are unlikely to reach a substantive trade agreement in Paris. The issues dividing them are too difficult to resolve quickly.

The Associated Press. Read the full story here.

OECD: Trade war takes toll on U.S. economy

Global economic growth is slowing more than expected from only a few months ago as the fallout from the Trump administration’s trade war takes a bigger toll on the U.S. economy, the OECD said on Tuesday, revising down its outlook.

The global economy is on course to slow from 3.3 per cent last year to 2.9 per cent in 2025 and 2026, the Organization for Economic Cooperation and Development said, trimming its estimates from March for growth of 3.1 per cent this year and three per cent next year.

But the growth outlook would likely be even weaker if protectionism increases, further fuelling inflation, disrupting supply chains and rattling financial markets, the Paris-based organization said in its latest economic outlook.

“Additional increases in trade barriers or prolonged policy uncertainty would further lower growth prospects and likely push inflation higher in countries imposing tariffs,” OECD Secretary General Mathias Cormann said as he presented the report.

Reuters. Read the full story here.