Dog Days of Summer: Weekly Economic & Financial Commentary

Canada Has Postponed Its Plans To Impose Counter Tariffs On U S Aluminum Imports Canada pauses new tariff threats as Trump escalates Canada is delaying its plans to slap retaliatory tariffs on U.S. steel and aluminum after President Donald Trump sent a letter extending the deadline for trade negotiations between the two North American neighbors — though he also threatened to impose higher tariffs. Mark Carney’s government was preparing to double its countertariffs on U.S. metals on July 21 — to 50 percent from 25 — but Trump’s letter has moved the prime minister off that target. Two senior government officials told POLITICO that Canada will not further retaliate against U.S. steel and aluminum on July 21, the previous deadline for the talks, after the two sides agreed to extend their negotiation deadline around a new economic and security deal to Aug. 1. Canada’s current 25 percent countertariff on U.S. steel and aluminum will remain in place during the negotiations. But if a deal is not reached by the new deadline, both sides are threatening to raise and expand their duties on the other’s goods.