Canada Says Retaliation Options Available if Section 232 Tariffs Return on Aluminum

In testimony in Canada's House of Commons, former government chief negotiator Steve Verheul told politicians that there is no surge in Canadian aluminum exports to the U.S., so a return to 10% tariffs on Canadian exports is not warranted. He said the product mix shifted, but the total exports are not up.

The Canadian Press reported that he told the trade committee members July 9 that Canada may retaliate on any “aluminum containing products” if the U.S. brings back Section 232 tariffs. “That's a very broad category,” he said. But what Canada should do will depend on what the U.S. does.

U.S. Trade Representative Robert Lighthizer testified to Congress that his office is consulting with Canada over a surge. Top House Democrats on the Ways and Means Committee said they didn't want to see tariffs return on Canadian aluminum (see 2006250048). But Senate Finance Committee Chairman Chuck Grassley, R-Iowa, said that if USTR doesn't get satisfaction, he would be OK with a return of aluminum tariffs (see 2006300036).