Canadian Trade Minister: Canada Wants Autos, Steel, Aluminum Too
Dominic LeBlanc, Canada's minister for U.S.-Canada trade relations, said that while conversations with Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer have been cordial and productive, "we're not yet where we need to go to get the deal that's in the best interest of the two economies."
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LeBlanc said a 25% tariffs on Canadian vehicles and a 50% tariff on steel and aluminum are effectively a block on its exports. He said that Canada has melt and pour tracing on steel products, so no Chinese overcapacity can flow through Canada to the U.S. -- and he's making the argument that Canadian steel should therefore not be subject to the global tariff.
"Face the Nation" talk TV host Margaret Brennan noted that Detroit's big three all said tariffs are hurting their profits, and that the treasury secretary acknowledged that going from a 10% to a 50% tariff on aluminum hurt Ford.
"Do you see room for maneuver on these?" she asked on the show Aug. 3. "Are they willing to negotiate with you on those tariffs?"
"We hope so," he replied. "And, as I say, we're encouraged by the conversations with Secretary Lutnick and Ambassador Greer, but we're not yet where we need to go to get the deal that's in the best interest of the two economies." He added that "Canadian aluminum companies massively supply the American market. And by putting a 50% tariff on aluminum from Canada, you've increased the price of a whole series of goods."
LeBlanc said he understands that the U.S. wants a healthy auto sector, steel sector and aluminum sector, but that these sectors are also "vital to the economic future of Canada."
He said Canada is looking for a deal "where we can both continue to supply one another in a reliable, cost-effective way that preserves jobs essential to the American economy, but the same thing is true, obviously in Canada as well."