Canadian Steel Producers Respond to Government of Canada's Plan for our Industry
"Canadian steel producers face a dire situation. The unjustified tariffs by the United States have delivered a significant blow to our industry. Initially set at 25% and adjusted to 50% on June 4 th, these tariffs are devastating. The US was a destination market for 6.5 million tonnes of Canadian steel. Consequently, we have significantly dropped shipments and have experienced close to one thousand job losses to date and are preparing for thousands more.
"Last week, the Canadian government announced a package of new and future measures to address the steel sector's concerns. While we appreciated their willingness to act, we are concerned that the immediate measures fail to address the crisis we are in.
"A newly proposed border measure – a tariff rate quota (TRQ) – has been announced that will continue to allow high levels of foreign steel into our country tariff-free. The industry had asked repeatedly for significantly lower import levels on unfair traders to regain market share at home. We believe it is long overdue to expect a rules-based trading environment within Canada. In its current form, the TRQ will do little to support our industry.
"While our sector applauds the proposal for additional measures to fight global overcapacity with our melted and poured policy, the government's plan to implement these only in the coming weeks is at odds with the extreme urgency we are feeling."
"The government has set a 30-day deadline for a new economic and security relationship with the United States. We appreciate the government's plan to reinstate a strong counter tariff package on the US depending on how those discussions progress. It remains a fact however that significant volumes of US steel continue to enjoy the privilege of entering Canada tariff-free while we face a 50% tariff that has essentially closed the US market to the Canadian industry.
"It is encouraging to hear renewed commitments to use steel in future public projects where this is feasible. This is a laudable long-term objective. However, without the right border actions, our steel producers will be unable to contribute to projects around our country because we will be a significantly reduced and weakened industry.
"The government has committed to review the elements of this plan in 30 days. It is our sincerest objective to work with the government constructively to find a path forward that supports our country and our industry as quickly as possible."
About the Canadian Steel Producers Association
The Canadian Steel Producers Association (CSPA) is the national voice of all primary steel producers and some of the country's largest steel consumers. Our 17 members supply the essential materials to key sectors such as automotive, energy, construction, and transportation—driving jobs and economic growth across North America. The CSPA advocates for a competitive and sustainable business environment that strengthens the steel sector and its supply chains.
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