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Trump impact on Canada: Carney gears up to block steel imports from China
Prime Minister Mark Carney promised to further crack down on the amount of cheap, foreign steel entering the Canadian market by the end of the month, as the domestic industry continues to be clobbered by US President Donald Trump's tariffs.
Carney made the announcement in Hamilton on Wednesday morning, eliciting a sigh of relief from an industry that has already seen layoffs and lower production levels in the weeks since the US imposed steep import taxes.
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In June, the government announced changes to the tariff quota system, which allows a set level of product to enter Canada at a lower tariff rate, by limiting steel imports from countries that don't have free trade agreements to 2024 import levels.
But those quotas were criticized by the industry as still being too high. Canadian steelmakers have long alleged that foreign companies are supplying steel to the Canadian market at ultra-low prices, a practice commonly known as dumping, making it hard for them to compete.
Carney said the quota changes 'will ensure Canadian steel producers have a bigger share of the Canadian market.'
Steel products from non-free trade agreement partners, which include China and Turkey, will see their tariff rate quota tighten to half of 2024 volumes. A 50 per cent tariff will be imposed on any imports beyond those levels, Carney said.
Ottawa is also moving to clamp down on steel from partners who do have free trade agreements with Canada, other than the U.S. and Mexico. The federal government said a 50 per cent tariff will apply to imports surpassing 2024 volumes.
Carney said Canada will implement additional tariffs of 25 per cent on imports from all non-US countries containing steel melted and poured in China.
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'Imports supply almost two-thirds of current Canadian consumption of steel, compared to less than one-third for the United States and less than one-sixth for the European Union,' Carney said.
Existing arrangements with the Canada-US-Mexico Agreement (CUSMA) will remain the same, he said.
Carney announced no changes to US counter-tariffs as the two countries work toward their Aug. 1 deadline.
Catherine Cobden, president and CEO of the Canadian Steel Producers Association, said she listened to the announcement 'with relief.'
'It's certainly a much better place than where we were yesterday,' she said of the quota changes.
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