Canada Introduces New Tariffs on Chinese Steel Amid Trade War

Canadian Prime Minister Mark Carney has announced that steel originating in China will face higher tariffs to combat steel dumping amid the ongoing global trade war. This comes after U.S. President Donald Trump hiked tariffs on steel and aluminum to 50 per cent from 25 per cent over a month ago. The new measures aim to protect the Canadian steel industry, which currently relies heavily on imports to meet demand. Canada has pledged to negotiate with the U.S. to secure a new economic deal.

Key Takeaways:

• Canada will impose a 25 per cent tariff on all steel products containing metal melted and poured in China by the end of the month.
• The new tariff is aimed at tackling steel dumping, where foreign competitors, such as China, unfairly benefit from non-market policies.
• Catherine Cobden, CEO of the Canadian Steel Producers Association, described China as an "egregious" overcapacity practitioner.
• Canada will implement import quotas on foreign steel, excluding the U.S. and Mexico, by the end of July.
• The quotas will be set at 50 per cent of the country's 2024 exports to Canada for countries without a free-trade agreement, and 100 per cent for those with one.
• Canada currently has free-trade agreements with 51 countries across 15 deals.

Statistics:

• 70 per cent of Walters Group's product went to the U.S. in the last few years, but now almost none does due to Trump's 50 per cent steel tariffs.
• Canada imports almost two-thirds of its steel, compared to less than one-third for the United States and less than one-sixth for the European Union.
• The Canadian steel industry currently relies heavily on imports to meet demand.

Sources:

• The Canadian Press