In the midst of 50 per cent tariffs by the United States on Canadian steel, the Government of Canada announced six measures as part of their response.
However, the Canadian Steel Producers Association (CSPA), which is the national voice of all primary steel producers, and the United Steelworkers Union (USW), which has 225,000 Canadian members, immediately came out and said that the plan “falls short of what our industry needs.”
A more detailed press release from the CSPA a few days later adds, “While we appreciated [the Government of Canada’s] willingness to act, we are concerned that the immediate measures fail to address the crisis we are in.”
Catherine Cobden, President and CEO of the CSPA, explained, “Canadian steel producers face a dire situation. The unjustified tariffs by the United States have delivered a significant blow to our industry. Initially set at 25% and adjusted to 50% on June 4th, these tariffs are devastating.”
“The U.S. was a destination market for 6.5 million tonnes of Canadian steel. Consequently, we have significantly dropped shipments and have experienced close to one thousand job losses to date and are preparing for thousands more,” Cobden continued.
One of the measures announced by the Mark Carney-led Liberal government is that Canada will establish new tariff rate quotas of 100 per cent of 2024 levels on imports of steel products from non-free trade agreement partners “to stabilize the domestic market and prevent harmful trade diversion as the result of U.S. actions that are destabilizing markets.”
That means that there will be tariffs on steel imported to Canada from non-free trade agreement partners at a specific rate, and then, once the import quota is reached, a higher tariff rate will apply.
However, Cobden says, “In its current form, the tariff rate quota will do little” to support the steel industry.”
She says that the tariff rate quota “will continue to allow high levels of foreign steel into our country tariff-free.”
“The industry had asked repeatedly for significantly lower import levels on unfair traders to regain market share at home. We believe it is long overdue to expect a rules-based trading environment within Canada.”
Another measure from the Government of Canada is that they promise to “adopt additional tariff measures over the coming weeks” and that “measures will be applied on the basis of ‘country of melt and pour’ for steel.”
The CSPA also takes issue with that measure, noting that the government’s plan to implement the policy “only in the coming weeks” is “at odds with the extreme urgency we are feeling.”
The Government of Canada also promised to adjust its 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.”
In response to that promise, the CSPA says, “We appreciate the government’s plan to reinstate a strong counter tariff package on the US, depending on how those discussions progress. It remains a fact, however, that significant volumes of US steel continue to enjoy the privilege of entering Canada tariff-free while we face a 50% tariff that has essentially closed the US market to the Canadian industry.”
Based in Hamilton, he reaches hundreds of thousands of people monthly on Facebook, Instagram, TikTok, and Twitter. He has been published in The Hamilton Spectator, Stoney Creek News, and Bay Observer. He has also been a segment host with Cable 14 Hamilton. In 2017, he received the Chancellor Full Tuition Scholarship from the University of Ottawa (BA, 2022). He has also received the Governor General’s Academic Medal. He formerly worked in a non-partisan role on Parliament Hill in Ottawa.
