OTTAWA — Ottawa held its fire for a second day in a row Thursday after U.S. President Donald Trump doubled his steel and aluminum tariffs to 50 per cent — despite numerous calls for Canada to swiftly retaliate with new tariffs of its own.
Prime Minister Mark Carney is said to be engaging in behind-the-scenes trade discussions with Trump.
Industry Minister Mélanie Joly emerged from meetings with major CEOs from the steel sector and organized labour on Thursday without announcing any concrete retaliatory action, even as the industry called on her government to hit back.
The sector has warned the tariffs could have catastrophic consequences and, just a day earlier, called on Ottawa to match Trump's expanded tariffs on steel and aluminum.
Joly said the new U.S. tariffs are "completely unacceptable" and said the government is in a "solutions mode" with the industry — although she had no new solutions to offer on Thursday.
When reporters on Parliament Hill asked the minister if Canada is close to a deal with the U.S., Joly bristled.
"Guys, do you really think I'll answer that question?" she asked rhetorically. "I won't answer that question. We won't negotiate in public and we'll let the prime minister do his work."
Earlier in the day, Ontario Premier Doug Ford said Carney is in "deep, deep discussions" on trade with Trump.
"I'm not going to speak on behalf of the prime minister. I just know that they're right at the brink," Ford said at the Ontario legislature. "They're working hard around the clock to try to get a deal."
The Globe and Mail also reported Thursday that Trump’s ambassador to Canada, Pete Hoekstra, said Carney is secretly in talks with the president to reach a new trade and security deal.
Trump hiked U.S. duties on steel and aluminum imports Wednesday from 25 to 50 per cent. Those higher tariffs pose a major threat to Canada's steel plants and manufacturing sector.
The Canadian Steel Producers Association has said Trump's latest tariff assault is dealing a "crushing blow" to the Canadian industry and effectively blocks Canadian steel from entering the U.S. market.
Ford said he told Carney on Wednesday that the best outcome would be a swift deal with the U.S. that would end Trump's tariffs on Canadian products.
If such a deal doesn't emerge in the next few days, he said, Canada should "come out guns a-blazing" and match Trump's 50 per cent steel and aluminum tariffs with retaliatory levies of its own.
Carney said on Wednesday that his government would need to take "some time" to craft a response to the increased U.S. tariffs.
"We will take some time — not much — some time because we are in intensive discussions right now with the Americans on the trading relationship. Those discussions are progressing," Carney said on Wednesday.
Ford said Thursday he was "very clear" in his message to the prime minister when the two spoke the day before.
"The ideal situation is to get a deal, and if that deal does not happen in the next few days, then we have to slap another 25 per cent tariff on top of the existing 25 per cent tariff on our aluminum and steel," he said.
"I think the prime minister is doing an incredible job on negotiating along with (Canada-U.S. Trade Minister Dominic LeBlanc) as well, but we're in very close contact almost on a daily basis."
— With files from Allison Jones in Toronto
This report by The Canadian Press was first published June 5, 2025.
Kyle Duggan, The Canadian Press
