Canada has proposed removing tariffs on certain steel and aluminum products imported from the US and China, Reuters reports, citing a government document published late last week.
The government is thus seeking to help local businesses that have been affected by trade wars.
In an amendment to the order to repeal the additional tax on Chinese imports from 2024, the Ministry of Finance granted exemptions for certain types of steel and aluminum supplied from China and not produced in Canada.
The order came into force on October 15, and more detailed information will be released on November 5.
The ministry also exempted certain US steel and aluminum products from tariffs, mainly related to healthcare, national security, manufacturing, agriculture, and food packaging.
Finance Minister François-Philippe Champagne later explained that this refers to a group of very specific goods that must be imported into Canada to support supply chains and will not significantly affect the amount of counter-tariffs collected.
The Canadian Steel Manufacturers Association expressed disappointment that US manufacturers had been granted a broad exemption from tariffs for another two months, while local steelmakers were suffering from a lack of access to the US market. This was reported by the association’s CEO and president, Catherine Cobden.
She added that Canadian producers are also capable of replacing “unfair” Chinese steel on the market.
At the same time, the Canadian Institute of Steel Construction (CISC) insists on the need for a plan to counter the impact of US tariffs on Canadian steel and aluminum. This was stated by CISC President and CEO Kinning Loomis to CTV News.
Loomis calls on the federal government to focus on domestic procurement while maintaining access to the US market.
He also believes that significant changes must take place within the United States. According to him, many Americans disagree with the tariffs.
“Only a few entities — steel producers with excessive influence — will benefit at the expense of the rest of the US and Canadian economies,” said the CISC president.
It should be recalled that after the meeting between Canadian Prime Minister Mark Carney and US President Donald Trump, the Canadian government hoped to quickly conclude agreements on tariffs on steel and aluminum, as well as in the energy sector.