Canada Slaps Tariffs on Foreign Steel
Canadian PM Mark Carney has vowed to increase the rules on steel imports and place massive new tariffs, as Canada's national industry struggles from US President Donald Trump's assertive trade approach. In Hamilton, Mark Carney vowed to cut the influx of bargain-basement foreign steel—particularly from China—into the Canadian economy.
His action is amid Canadian producers struggling with layoffs, production reductions, and dumping by non-free trade nations. The steps involve stringent quotas, increased tariffs, and tighter controls to shield domestic steelmakers and shore up a stressed sector.
Since the imposition of sharp import duties by Trump, Canada's steel sector has been impacted. Factory layoffs and reduced production levels have hit factories. Carney recognized the agony in his Wednesday statement.
The crisis spooked Ottawa into action. In June, the government updated its tariff quota system. The new policy caps imports from non-free trade nations—such as China—at 2024 levels. Anything above that would attract a high tariff rate. Industry players cautioned, however, that the moves did not go far enough.
Mark Carney has now moved to address those concerns. He stated that steel imports from non-free trade allies will be tighter quotas. Imports from nations such as China and Turkey will be capped at half of 2024 levels.
Should importers go beyond that, they will pay a 50% tariff. Steel from free trade nations—save the US and Mexico—will also see a 50% tariff on volumes beyond 2024 levels.
Mark Carney took it further. Canada will now impose a 25% tariff on any steel coming from non-U.S. nations that has steel melted and poured in China. This is a huge broadening of trade enforcement against Chinese steel.
The Canadian steel industry reacted positively. Catherine Cobden, president and CEO of the Canadian Steel Producers Association, declared she felt "relief" following Carney's decision.
"It's definitely a much improved place than we were yesterday," she said, complimenting the new quotas and tariffs.
Mark Carney noted that imports account for almost two-thirds of Canadian use of steel. That is compared to only one-third in the US and one-sixth in the EU. The disparity, he contended, leaves Canada particularly susceptible to foreign dumping.
Current trade terms under the Canada-US-Mexico Agreement (CUSMA) will not change. Carney also said there will be no short-term change to U.S. counter-tariffs, as both countries are still negotiating before the August 1 deadline.
Canada is now standing firm. With Trump's tariffs shaking world markets, Ottawa is ensuring Canadian steelmakers don't take the hit alone.
