Feds prepared to push back against any new U.S. tariffs on aluminum, Duclos says

The federal government will make the case to the Trump administration that Canadian aluminum is no threat to the American market, as the mercurial president reportedly prepares to slap on tariffs anew.

Treasury Board President Jean-Yves Duclos said Tuesday federal officials will push back against any new protectionist effort by Donald Trump to impose tariffs on steel and aluminum.

A report from Bloomberg says the Trump administration is planning to impose a 10 per cent tariff on aluminum imports from Canada.

Duclos would not say whether the government is aware of a new round of tariffs, but said the threat of protectionism still exists and the risk becomes bigger in the wake of the pandemic.

"We all are aware of the protectionist attitudes and actions of the last few years in the context of our relationship with the United States," Duclos said during a midday briefing Tuesday.

He said the Canadian government had worked hard to secure a new North American free trade agreement — and end the previous round of tariffs against imports of aluminum and steel from Canada — but warned of the need to remain vigilant.

"We need, as Canadians, to be mindful of the fact that protectionism still exists and in fact runs the risk of being even bigger and being an even greater threat as we emerge from the COVID health and economic crisis," Duclos said.

"This being said, we use every opportunity to make our neighbours and our friends and trade partners understand that it is to the joint benefit of everyone to keep the flow of goods and services open and strong, because we all gain from that."

The last time the Americans imposed such tariffs, the federal government imposed reciprocal fees on a slew of U.S. products crossing into Canada before both sides backed down.

Duclos said the Canadian government has fulfilled its end of the trade detente by ensuring Canada isn't a conduit to the U.S. for cheaper overseas product.