After a blown deadline, what next for US-Canada trade?
Deadline missed
The deadline for resolving the dispute over US steel and aluminum tariffs has passed without resolution, with both sides now considering their next steps. The tariffs, which were imposed by the US under Section 232, are currently subject to a WTO dispute settlement case filed by Canada. US officials had hoped to reach a negotiated settlement with their Canadian counterparts prior to the deadline, but this has now passed without an agreement.
Impacts on businesses
The lack of resolution means that the tariffs will remain in place, continuing to impact businesses and industries on both sides of the border. The tariffs, which range from around 3% to 25%, have been a major point of contention for industries that rely on imported steel and aluminum, as well as for businesses that operate in both the US and Canada.
Next steps
Both the US and Canada have now indicated that they will be pursuing their own separate paths in response to the tariffs. Canada's Minister of Foreign Affairs has stated that the country will be filing for arbitration at the WTO, while the US Department of Commerce is said to be considering plans for possible tariff increases on Canadian products.
Impacts on consumers
The lack of resolution in the tariff dispute also impacts consumers, who may face higher prices for goods and services that rely on steel and aluminum as inputs. Industries such as the automotive sector and construction industry could potentially see increased costs being passed on to consumers.
