Canada Outlines New Measures To Protect Its Steel, Aluminum Industries

As Manufacturing Dive reported, the Canadian government may soon raise tariffs on U.S. steel and aluminum imports if the two countries do not reach a trade agreement within the next month. “The new tariffs from Canada are slated to begin July 21, a little less than two weeks after a 90-day pause on country-specific reciprocal tariffs from the U.S. is set to expire,” Manufacturing Dive said.

Specifically, according to a press release issued by Minister of Finance and National Revenue  François-Philippe Champagne, the Canadian government will:

• Immediately create two government-stakeholder task forces, one for steel and one for aluminum, that will closely monitor trade and market trends to support government decision making;
• On June 30, will begin implementation of reciprocal procurement policies to limit access to federal procurements to suppliers from Canada and from the country’s reliable trading partners that provide reciprocal access to suppliers from Canada through trade agreements;
• Adjust existing counter-tariffs on steel and aluminum products on July 21, to levels consistent with progress that has been made in the broader trading arrangement with the United States;
• Establish new tariff rate quotas of 100 percent of 2024 levels on imports of steel products from non-free trade agreement partners — these quotas will be applied retroactively and will be reviewed in 30 days;
• Adopt additional tariff measures over the coming weeks to address risks associated with persistent global overcapacity and unfair trade in the steel and aluminum sectors — these measures will be applied on the basis of “country of melt and pour” for steel and “country of smelt and cast” for aluminum; and
• Continue to invite applicants to the new $10 billion Large Enterprise Tariff Loan facility, which supports eligible large businesses that are facing difficulties in accessing traditional sources of market financing by providing access to liquidity.

“The government remains prepared to take additional steps as needed and will continue to review the appropriateness of its response, pending developments with U.S. tariffs,” the press release pledged.