Trump signed an executive order Tuesday to double the levies on steel and aluminum to 50 per cent, claiming it was necessary to protect national security and industries in the United States.

On his way into the weekly Liberal caucus meeting in Ottawa Wednesday, Carney said Canada is in "intensive" discussions with the U.S. on trade. The prime minister said the tariffs are "unlawful and unjustified" and predicted they will harm American industry and workers.

Carney also said that Canada currently has retaliatory tariffs in place on $90 billion worth of U.S. goods.

"We will take some time — not much, some time — because we are in intensive discussions right now with the Americans on our trading relationship," Carney said when asked about his government's response to the increased tariffs.

"Those discussions are progressing. I would note that the American action is global action. It's not one targeted at Canada. So we'll take some time, but not more."

Ontario Premier Doug Ford said he told Carney that Ottawa should add another 25 per cent to Canada's retaliatory tariffs on steel to match Trump's levies.

"Canada is not the problem," Ford said on CNN Wednesday. "Again, we purchase $30 billion … of steel off the U.S., and that's going to come to an end real quick."

Industry Minister Mélanie Joly said she's spoken with at least ten steel and aluminum sector CEOs and knows that many communities are anxious, but the government will take a moment before it proceeds with any kind of counter-punch.

"We are looking at different scenarios right now and we will take a decision, but we need a bit more time right now. Not too long," she said.

Interim NDP Leader Don Davies said Canada should quickly match Trump's latest tariffs and said Carney should act soon because "industry and jobs are at stake"

"I'm a little bit surprised that Prime Minister Carney needs time. These tariffs have been foreshadowed for some time," he said. "We need action."

Canadian Labour Congress president Bea Bruske also said the government should meet "force with force" by imposing surtaxes and blocking U.S. steel and aluminum. She called for emergency reforms to employment insurance for laid-off workers.

"We cannot back away form this," Bruske told a joint press conference on Parliament Hill with the Federation of Canadian Municipalities and the Canadian Chamber of Commerce.

She said Trump is "not rational in terms of thinking about what the implications are."

Chamber of Commerce president Candace Laing said Trump's "reckless" tariff escalation "doesn't make any sense" and will "strain the very supply chains that in fact keep both economies running in Canada and in the United States."

"Costs are climbing and in fact there could be a pathway here where self-harm runs its course," she said, adding she endorses "targeted counter-tariffs."

Laing said she's keen to see steel and aluminum used in new nation-building projects the Liberal government has vowed to support, but she also cautioned that Canadian communities suffering from Trump's tariffs now won't be able to wait for that work.

Canada is a major supplier of steel and aluminum to the United States and economists have warned the tariffs could lead to cost increases for Americans. Both metals are used in a wide range of industries, from construction and the auto sector to the manufacture of products like soup cans and paper clips.

Some in American industry have applauded Trump's tariffs while others say predictable trade plans are necessary for investment.

David McCall, the international president of the United Steelworkers union, said in a statement that work must be done "in collaboration with trusted allies" like Canada — the top exporter of steel and aluminum to the U.S. — to help "contain the bad actors."

The Canadian steel and aluminum industries say the doubled tariffs will have a devastating impact.

Liberal MPs from steel towns in Ontario were visibly shaken when they entered caucus Wednesday.

MP Lisa Hepfner of Hamilton, a major steel hub, did not mince words when asked about the impact of 50 per cent tariffs.

"Thousands of jobs lost," she said. "The end of the industry."

She called for increased retaliation and said "it has to be quick."

MP Terry Sheehan represents Sault Ste. Marie, where Algoma Steel is located. He said the industry was already struggling under 25 per cent tariffs.

"If industry goes down in northern Ontario, you don't just lose your job, which is a terrible thing. You lose the equity in your home when those industries shutter," Sheehan said.

Conservative Leader Pierre Poilievre posted on social media that Trump's move to double tariffs was "wrong and unjustified." He said Canada needs "to take a strong stance in response to these tariffs that gets a deal as soon as possible, protects our sovereignty & jobs."

Conservative deputy leader Melissa Lantsman called for an emergency debate on the duties. In a post on social media, she said "Canada’s steel and aluminum workers need a plan now."

— With files from Kelly Geraldine Malone in Washington and The Associated Press

This report by The Canadian Press was first published June 4, 2025.