Canada Considers Enhanced Tariffs to Protect Domestic Steel Industry

A recent publication by Bloomberg highlights that Canadian Industry Minister Melanie Joly is set to unveil new strategies aimed at curbing steel dumping from abroad and supporting local manufacturers struggling under heavy U.S. tariffs.

“We won’t tolerate any unfair trade practices affecting our Canadian market,” she asserted during a press conference in Montreal on June 11. “Strong actions will be taken to safeguard our industry.”

This follows Canada’s previous implementation of a 25% tariff on steel and aluminum imports from China last year, an effort designed to align its trade policies more closely with those of the U.S., while protecting domestic producers from cheaper imports flooding the market.

When pressed about whether these upcoming measures would specifically target China or if canada might consider increasing tariffs on Chinese steel and aluminum to match the U.S.’s aggressive stance, Joly remained noncommittal.

“We’re currently engaging with CEOs in the steel sector as well as labor representatives,” she noted, emphasizing that Prime Minister Mark Carney’s administration is focused on finding effective solutions without igniting another trade conflict.”

The ongoing tensions have led China to retaliate with a hefty 100% tariff on Canadian canola and additional duties on pork and seafood imports—an escalation that complicates matters further for both nations.

In an attempt at diplomacy, Carney recently spoke with Chinese Premier Li Qiang, suggesting there may be room for improvement in their strained relationship.

The industry minister also mentioned plans to ensure that Canadian-made steel and aluminum are prioritized for major infrastructure projects—a demand long voiced by both industry leaders and labor groups alike.

CLOSER LOOK: Negotiations Over Steel Tariffs Between US & Mexico Approaching Conclusion

Among Canada’s leading producers are ArcelorMittal SA,Cleveland-cliffs Inc., and Algoma Steel Group Inc. Notably, ArcelorMittal announced it would permanently close one of its facilities in Hamilton due to ongoing economic difficulties exacerbated by rising import levels—resulting in job losses for over 150 workers.

Despite Trump’s recent increase of tariffs from 25% to a staggering 50%,Carney has refrained from implementing further retaliatory actions thus far. He has indicated that discussions regarding trade relations with the U.S. are currently intensive.

An interesting fact is that Canada remains the largest foreign supplier of steel for the United States—accounting for approximately six percent of American consumption projected for this year according to MEPS International data—and holds an even larger share when it comes to aluminum exports.

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