On Wednesday, Canadian Prime Minister Carney announced a series of new tariff measures targeting steel imports, in response to trade pressures faced by domestic steel companies. The measures include setting import quotas for some free trade partners, and imposing an additional 25% tariff on products containing Chinese steel.
Carney stated that the government will implement a tariff quota system for countries that have signed free trade agreements with Canada; if import volumes exceed the 2024 benchmark level, a 50% tariff will be imposed on the excess portion. Carney emphasized that Canada will continue to honor its commitments under the United States-Mexico-Canada Agreement (USMCA).
At the same time, starting in late July, Canada will impose an additional 25% tariff on all imported steel products containing “smelted and cast” steel components from China. Carney said: “These measures are aimed at preventing other countries from transshipping steel to Canada to circumvent the high tariffs imposed by the United States, which undermines the local competitive environment.”
In addition, the Canadian government also announced the establishment of a 1 billion Canadian dollar (3.1 billion ringgit) steel fund to help local businesses develop technology and production projects in areas such as national defense, and pledged to give preference to domestic steelmakers in government procurement.
For countries without a free trade agreement with Canada, the duty-free quota will be halved from the previous 100% to 50%. Imports beyond the quota will also face a 50% tariff.
Robert Cobden, president of the Canadian Steel Producers Association, said in an interview with the Canadian Broadcasting Corporation: “This is something we’ve always needed to do. We are very pleased to see we are making progress.”