TMTPOST -- Canada is getting ready for countermeasures against U.S. steel and aluminum tariff once its trade negotiations with the Trump administration stall.

Credit：Xinhua News Agency

The Canadian government will boost its measures, including the planned counter-tariffs hike, to protect local steel and aluminum workers and industries, according to a statment of the Department of Finance on Thursday. “Canada will adjust its existing counter-tariffs on steel and aluminium products on July 21, to levels consistent with progress that has been made in the broader trading arrangement with the United States,” said the department in the statement.

Besides the possible counter-tariffs on steel and aluminum, the Canadian government on Thursday announced upcoming implementation of reciprocal procurement policies to limit access to federal procurements to suppliers from Canada and from its reliable trading partners that provide reciprocal access to suppliers from Canada through trade agreements.

Canada will establish new tariff rate quotas of 100% of 2024 levels on imports of steel products from non-free trade agreement partners, in bid to prevent domestic market disruption due to the U.S. tariffs. These quotas will be applied retroactively and will be reviewed in 30 days.

The government will also adopt additional tariff measures over the coming weeks to remove “risks associated with persistent global overcapacity and unfair trade in the steel and aluminum sectors, which are exacerbated by U.S. actions.”

Ottawa in the statement suggested more countermeasures will come into force if Canada-U.S. trade talks fail to address tariff risks. “The government remains prepared to take additional steps as needed and will continue to review the appropriateness of its response, pending developments with U.S. tariffs,” said the government in the statement on Thursday.

“We’ll continue these negotiations, of course, in good faith,” Canadian Prime Minister Mark Carney said at a news conference. “In parallel, we must reinforce our strength at home and safeguard Canadian workers and businesses from the unjust U.S. tariffs that exist at present.”

U.S. President Donald Trump earlier this month signed a proclamation to raised tariffs on steel and aluminum imports into the country to 50% from 25%, taking into effect on June 4. The new tariffs apply to imports from all the U.S. trading partners except Britain as Trump had decided that it is necessary and appropriate to allow for the implementation of the U.S.-Britain trade deal, and to accordingly provide different treatment for Britain exports to U.S.

This is the second time that Trump hiked tariffs on steel and aluminum imports in nearly three months. The president on February 10 signed an order to impose 25% steel and aluminum tariffs starting March 12. He in the meantime removed the exemptions from his 2018 tariffs on steel, meaning that all steel imports should be taxed at a minimum of 25%, and also raises his 2018 aluminum tariffs from 10% to 25%.

Trump on Monday expressed optimism on a trade deal with Canada in sight during the annual G7 meeting in the country. Trump suggested he expected U.S. would make a deal with Canada even though Carney has disagreements with his administration. Asked whether a deal is achievable in days or weeks, Trump agreed. The president said he and Carney have different views on tariffs, but the two governments will seek some progress in resolving their trade dispute.