Canada's steel producers tell government its tariff protection measures aren't enough

 

Canadian steel industry leaders have warned the federal government that its current measures to shield the sector from the impact of increased U.S. tariffs are insufficient and risk causing further job losses. During a meeting with officials including Patrick Haley, assistant deputy minister for trade and finance, industry representatives said the government’s recent policies fail to address steel dumping and provide little real protection for domestic producers.

Earlier this month, U.S. President Donald Trump doubled tariffs on steel and aluminum imports from 25 percent to 50 percent. Canada, the top supplier of these metals to the U.S., responded by introducing a series of trade measures. These included new tariff rate quotas on steel imports from countries without free trade agreements, capped at 100 percent of 2024 levels.

However, steel executives argue these quotas do not go far enough. Catherine Cobden, President and CEO of the Canadian Steel Producers Association, said the policy fails to account for unfair trade practices by countries with existing trade agreements. She noted that steel from Europe and Asia is being diverted to Canada to bypass the new U.S. tariffs, making Canadian steel less competitive. Since the first wave of U.S. tariffs in March, the industry has already laid off 1,000 workers, with more job cuts anticipated.

Keanin Loomis, president of the Canadian Institute of Steel Construction, added that finished steel products remain unprotected under the new measures.

The Finance Ministry described its response as a strategic first step and said it is prepared to expand the measures. Prime Minister Mark Carney has threatened to impose further counter-tariffs on U.S. metals if no trade deal is reached by July 21. Tensions increased after Trump abruptly ended trade talks with Canada over a new digital services tax.

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