Ottawa Cracks Down on Foreign Steel Imports to Help Canadian Mills

Ottawa is tightening restrictions on imports of foreign steel into Canada in a bid to help Canadian steel mills that have been shut out of the US market due to President Donald Trump's tariffs. The move follows last month's announcements that steelmakers from countries like China and Turkey would face 50-per-cent tariffs if they shipped volumes above 100 per cent of 2024 levels. Prime Minister Mark Carney announced further action to limit imports, including a new quota of 50 per cent of 2024 volumes for countries with free-trade agreements with Canada.

Key Takeaways:

• The Canadian government is introducing a new quota of 50 per cent of 2024 volumes for countries with free-trade agreements with Canada, in addition to a 50-per-cent tariff for shipments above 100 per cent of 2024 levels.
• Canadian steel mills have been hurt by the Trump tariffs, which have diverted shipments from the US market into Canada, causing dumped foreign steel to flood the domestic market.
• Canadian steelmakers shipped about half of their output, representing 90 per cent of their exports, to the US before Trump's tariffs, but this has now ground to a halt.
• Only about one-third of the steel purchased in Canada goes to domestic mills, in part because dumped foreign steel makes domestic mills uncompetitive.
• EVRAZ North America and Welded Tube of Canada have filed an anti-dumping duty complaint with the Canada Border Services Agency, alleging that certain steel products are being sold into the Canadian market at unfairly low prices.
• The Canadian government is committing $70-million for training and income support to 10,000 steelworkers affected by the tariffs and $1-billion to help steelmakers advance projects aimed at making them more competitive at home.
• Industry leaders are calling for the government to mandate the use of Canadian steel in taxpayer-funded projects and for Prime Minister Justin Trudeau to reach a trade pact soon with the US that gives certainty to companies caught in the crossfire.

Statistics:

• Canadian steel mills shipped about 90 per cent of their exports to the US before Trump's tariffs.
• Only about one-third of the steel purchased in Canada goes to domestic mills.
• Canada has committed $70-million for training and income support to 10,000 steelworkers.
• The government is investing $1-billion to help steelmakers advance projects aimed at making them more competitive at home.
• Rio Tinto PLC has incurred US$300-million in costs stemming from the US tariffs on its Canadian aluminum exports in the first half of the year.

Sources:

• Ottawa is cracking down on foreign steel imports to help Canadian mills that have been shut out of the US market due to President Donald Trump's tariffs, The Globe and Mail, August 2023.
• Canadian steelmakers shipped about half of their output, representing 90 per cent of their exports, to the US before Trump's tariffs, The Globe and Mail, August 2023.
• EVRAZ North America and Welded Tube of Canada have filed an anti-dumping duty complaint with the Canada Border Services Agency, alleging that certain steel products are being sold into the Canadian market at unfairly low prices, The Globe and Mail, August 2023.
• The Canadian government is committing $70-million for training and income support to 10,000 steelworkers affected by the tariffs and $1-billion to help steelmakers advance projects aimed at making them more competitive at home, The Globe and Mail, August 2023.