Swift reaction but little action so far from Canada in response to Trump's steel and aluminum tariff hike

Prime Minister Mark Carney has called Tuesday's doubling of steel and aluminum tariffs by U.S. President Donald Trump "unjustified" and pledged to respond, but what that response might look like isn't clear yet.

Trump's order increasing the 25 per cent tariff on steel and aluminum announced in February to 50 per cent came into effect at midnight Tuesday, and some industry experts and politicians, including Ontario Premier Doug Ford, immediately called for swift retaliatory tariffs.

So far, the federal government hasn't said what retaliatory measures Canada might use, but was to discuss the issue at the regular Wednesday Liberal caucus meeting.

Carney called the new tariffs "unjustified" and "illegal" in a comment to reporters Wednesday morning ahead of the caucus meeting but did not reveal any new government actions.

"They're bad for American workers, they're bad for American industry, and, of course, for Canadian industry as well," he said.

He said his government would take "some time" to formulate a response. "Not much — because we are in intensive discussions right now with the Americans on the trading relationship," Carney said.

"I would note that the American action is a global action; it's not one targeted at Canada."

WATCH: Prime Minister Mark Carney speaks on tariffs ahead of caucus meeting:

Ahead of a Liberal caucus meeting, Prime Minister Mark Carney said the government is in ‘intensive discussions’ with the United States after tariffs on steel and aluminum increased from 25 to 50 per cent.

Finance Minister François-Phillipe Champagne, speaking Wednesday prior to the caucus meeting, said that the government's priority was "to fight against these tariffs" but also did not provide specifics.

Canada-U.S. Trade Minister Dominic LeBlanc was in Washington, D.C., on Tuesday for a meeting with U.S. Commerce Secretary Howard Lutnick. Afterward, he described the meeting as "a positive conversation" but did not confirm if an exemption for Canada was in the cards.

WATCH: Finance Minister says the government will fight against tariffs:

Before a Liberal caucus meeting, Finance Minister François-Philippe Champagne said the government’s priority is to ‘fight against’ tariffs and protect workers and industry after U.S. President Donald Trump increased tariffs on aluminum and steel from 25 to 50 per cent.

Ontario Premier Doug Ford, meanwhile, called for the federal government to respond immediately and place an additional 25 per cent tariff on U.S. steel coming into Canada.

"We can't sit back and let President Trump steamroll us," he said Wednesday.

He said he would be looking at how to ensure that manufacturers in Ontario, where Canada's steel industry is concentrated, are using as much domestic steel as possible.

"We have to use Ontario steel, Canadian steel, at all costs," he said.

When asked if he would consider placing a surcharge on electricity exports to the U.S. again, which he briefly threatened to do in March, he didn't rule it out. "Everything's on the table right now."

Catherine Cobden, CEO of the Canadian Steel Producers Association, told CBC News on Tuesday that a 50 per cent tariff means that the U.S. market is de facto "completely closed" to Canadian steel.

She said she is expecting to see more job losses on top of the ones already underway in the wake of the initial 25 per cent tariff. Canada is the top exporter of steel and aluminum to the U.S.

Some companies worry that the additional tariff hike will paralyze suppliers and customers while others say they have some wiggle room to adjust for now.

Keanin Loomis, president and CEO of the Canadian Institute of Steel Construction, said that although the price of steel goes up "as soon as tariffs are even mentioned," the industry had found a tentative "equilibrium" after the first round of tariffs.

"Now all of a sudden, again, this just throws another wrench into it."

WATCH: U.S. places additional tariffs on steel and aluminum:

U.S. President Donald Trump has signed a proclamation to officially increase steel and aluminum tariffs to 50 per cent, up from the previously announced 25 per cent tariffs. Despite another round of talks between Canadian officials and their U.S. counterparts, Canada is not exempt from the tariff hike.

He's calling for more retaliatory tariffs to be added to goods entering from the United States but cautioned that this should be done carefully to minimize blowback on Canadian businesses.

This was echoed by François Racine, CEO of the industry group AluQuebec, who told CBC News Network that countermeasures targeting finished goods and products made in the U.S. is something he supports but that placing tariffs on components and key products that Canadian manufacturers need won't help those businesses.

Tiff Macklem, governor of the Bank of Canada, announced on Wednesday that the central bank would be holding its key interest rate steady at 2.75, "as we continue to gain more information on U.S. trade policy and its impacts."

He called the trade war "the biggest headwind facing the Canadian economy" and noted that while the economy has shown some resilience in the face of tariffs and countermeasures if the trade rift is not resolved, the impacts will get worse.

"The longer these tariffs go on, the more this uncertainty goes on, the more this is going to weigh on the Canadian economy."