Chinese-origin steel products to face new tariffs under Canadian trade policy shift

Amid escalating global trade tensions, Canada is stepping up efforts to defend its domestic steel industry. Prime Minister Mark Carney announced a new set of tariffs on Wednesday during a visit to Walters Group, a steel manufacturer in Hamilton. The measures primarily target steel originating from China and include a 25% tariff on all steel products containing metal melted and poured in China. Moreover, non-U.S. steel imports exceedingly newly set quotas will face a steep 50% tariff.

Carney emphasized that these actions aim to address unfair competition and global overcapacity, particularly from countries like China, which have been accused of dumping cheap steel into international markets. Catherine Cobden, head of the Canadian Steel Producers Association, welcomed the decision, calling China one of the worst offenders of overcapacity and unfair trade practices.

Import quotas will be adjusted based on 2024 export levels. Countries without free trade agreements with Canada, such as China and India, will see their quotas limited to 50% of last year’s exports. Meanwhile, partners with trade agreements can export at 2024 levels without facing the 50% tariff.

The new tariffs come in the wake of U.S. President Donald Trump’s move to double tariffs on steel and aluminum. While Canada hasn’t responded with increased tariffs on U.S. goods, Carney said Ottawa continues to negotiate for a better economic agreement with Washington.

The Canadian steel industry is heavily reliant on exports, with over 90% of its steel going to the U.S. However, domestic consumption relies significantly on imports, two-thirds of steel used in Canada is imported. Carney emphasized the need to rely more on Canadian-made steel for national projects and announced $70 million in support programs to aid steelworkers affected by the shifting trade landscape.