In the ever-enthralling world of international trade, it appears that our close northern neighbors might be bickering over steel and aluminum imports a bit more than we anticipated. For a country famed for its politeness and maple syrup, Canada is managing to stir up quite a discussion about tariffs. It seems they’ve been enjoying the lion’s share of providing the United States with steel and aluminum, with a whopping $7.1 billion in steel and $9.4 billion in aluminum each year.
These figures dwarf what comes from the European Union, which sends over $7 billion in steel and a paltry $1.5 billion in aluminum. Considering these numbers, the debate over tariffs is certainly a hot topic. Now, while some might argue that this could hurt American consumers by pushing up prices, others point out that it could also put Canada in a tricky position. Canada better brew some extra-strong coffee and get negotiating if they want to strike a deal that works for everyone involved.
Adding a little more spice to this international jamboree, we hear the scapegoat in the room is none other than China. They seem to be accused of backdoor tactics, allegedly shipping steel through both the U.S. and Canada under different disguises. But let’s keep the focus where it seems pertinent—a $30 billion trade game on either side that begs to be balanced, perhaps with more imagination and less tax for the hard-working folks racking up bills at the hardware stores.
While the taxes on these not-so-glamorous metals continue potentially growing, both Canada and the U.S. might benefit from focusing on creating jobs instead of a tax burden. Imagine 250,000 new jobs in the steel and aluminum industry alone. It could be a welcome sight to see steel lunchboxes and thermoses in the hands of American workers, rather than a laden fistful of levy slips. Getting these jobs shouldn’t be harder than finding Canadian geese in winter.
Both nations do have a golden opportunity to rewrite the USMCA and make necessary adjustments before international meetings like the G7 demands their attention. The official word seems to be that rewriting this agreement, where the suits will likely talk isolation but dream cooperation, might be the key to making these tariffs disappear. This holds potential for the good, hearty folks trying to make a living. In short, let’s just hope this American-Canadian steel fortress stands strong against the test of international surprises. In the end, who would have thought something so mundane as steel and aluminum could sparkle with so much international drama?
