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50 min ago 2 min read
The Canadian government has officially raised import tariffs on nearly 700 US products including steel propane tanks and liquefied gas cylinders from 25% to 50% from today [8 September].
The retaliatory tariffs, affecting around $27.6bn worth of US imports, are in direct response to tariffs imposed by the US administration on Canadian goods, which were signed on 20 July and took effect 22 August.
The highest 50% band includes metals and infrastructure, and dairy and agriculture. The lowest 15% includes industrial equipment such as forklifts.
Non-US Mexico Canada (USMCA) compliant industrial gases face a 35% tariff, up from an initial 25%, applied to upstream production (air separation gases), midstream equipment and downstream sectors (packaged gases, cylinders, electronic and healthcare applications). USMCA-compliant goods remain exempt.
Prime Minister Mark Carney said he was taking the steps “reluctantly” as it will raise costs and reduce choice for Canadians. Canada is the number one export market for 26 US states and a top-three market for 45.
Marcy Grossman, non-resident senior fellow with the Atlantic Council’s Rafik Hariri Center and Middle East Programs and former Canadian ambassador to the UAE, said for Canada, the cost of accepting a bad deal from an unreliable partner is greater than the cost of walking away.
But when the time comes for future negotiations, she advised putting energy on the table as an opportunity, not a trade deficit.
“Greater Canadian energy exports and infrastructure, potentially including Keystone XL, could strengthen continental energy security while giving Washington a win,” she said.
“Above all, make certainty part of the bargain. Canada needs confidence that meeting agreed conditions will produce a durable agreement, not one vulnerable to the next hastily imposed tariff.”
Speaking on CNBC, Danielle Smith, Premier of Alberta, where energy is by far its most highly valued export, said, “There is a bigger conversation to be had, on where we can collaborate on pretty big strategic aims. We have a common interest in North American energy security. I hope this back-and-forth isn’t damaging the relationship.”
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