Canada Cracks Down on Cheap Foreign Steel Imports, Imposing New Trade Restrictions

Strategic Insights -

Canada is implementing new trade restrictions aimed at limiting the importation of cheap foreign steel into the country, a move that is seen as a direct response to the recent trade tensions with the United States. Prime Minister Jagmeet Singh announced the measures, which include imposing new tariffs on steel imports from countries without free-trade agreements with Canada. The new tariffs will apply to countries such as China, India, and Turkey, which have been accused of selling steel at artificially low prices to gain market share. The restrictions are also aimed at helping domestic producers, including the Canadian Steel Producers Association, which has repeatedly advocated for Ottawa to impose anti-dumping duties.

Key Takeaways:

  • The Canadian government is imposing new trade restrictions, including tariffs, on steel imports from countries without free-trade agreements with Canada.
  • The new tariffs will apply to countries such as China, India, and Turkey, which have been accused of selling steel at artificially low prices to gain market share.
  • The Canadian Steel Producers Association has repeatedly advocated for Ottawa to impose anti-dumping duties to help ease the pain of the U.S. tariffs.
  • Ontario Premier Doug Ford has expressed support for the Prime Minister's imposition of quotas on some steel imports, as well as adjusting tariffs on U.S. steel imports if a trade deal isn't struck within 30 days.
  • The new trade restrictions are seen as a direct response to the recent trade tensions with the United States.

Statistics:

  • 51 countries have free-trade agreements with Canada, including the United States, Mexico, the European Union, Australia, and Japan.
  • 50% tariff will apply to countries without free-trade agreements with Canada if the group of countries exceeds 2024 steel shipment volumes.
  • 17 companies, including Algoma Steel Group Inc., ArcelorMittal Dofasco, and Stelco, are represented by the Canadian Steel Producers Association.
  • The government plans to adjust countertariffs on U.S. steel and aluminum imports on July 21 to new levels that will depend on how trade talks are going.

Sources:

  • "Canada cracks down on dumping of cheap foreign steel" by Nojoud Al Mallees, Laura Stone, and Mark Rendell (The Globe and Mail)
  • "Canada to impose tariffs on steel imports from countries without trade agreements" by Bloomberg (June 2021)