Steel tariff measures ‘fail to address the crisis we are in,' industry says
The Canadian steel industry says the federal government's recently-announced measures to combat the impacts of U.S. steel and aluminum tariffs 'fail to address the crisis we are in.'
Thursday's statement from the Canadian Steel Producers Association (CSPA) takes particular issue with immediate measures like a tariff rate quota on foreign steel products, which the industry group says should be far lower to prevent the dumping of those materials at the expense of domestic producers.
'In its current form, the (tariff-rate quota) will do little to support our industry,' CSPA president and CEO Catherine Cobden said.
'While we appreciated their willingness to act, we are concerned that the immediate measures fail to address the crisis we are in.'
The measures unveiled by Prime Minister Mark Carney and his cabinet last week include a tariff rate quota of 100 per cent of 2024 levels on imports of steel products from non-free trade agreement partners in order to prevent oversupply of those metals.
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The goal, Carney said, is to ensure foreign steel diverted away from the U.S. due to its 50 per cent tariffs don't end up in Canada.
The government also intends to introduce new tariffs in the coming weeks to protect Canadian industries from unfair trading practices and global overcapacity, but has not set a specific date for those measures.
The timeline, Cobden said Thursday, 'is at odds with the extreme urgency we are feeling.'
1:48
Carney to increase U.S. steel, aluminum tariffs if trade talks with Trump stall
U.S. President Donald Trump first imposed tariffs on steel and aluminum at a 25 per cent rate in March, and later raised the rate to 50 per cent earlier this month.
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'The unjustified tariffs have delivered a significant blow to our industry,' which had previously considered the U.S. a 'destination market' for 6.5 million tonnes of Canadian steel, Cobden said.
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During that time, according to the CBSA, steel producers in Canada 'have significantly dropped shipments (to the U.S.) and have experienced close to 1,000 job losses to date and are preparing for thousands more.'
Global News has reached out to Industry Minister Melanie Joly's office for comment on the CBSA's latest statement.
Immediately following the government's announcement last week, the CBSA and the United Steelworkers Union said in a joint statement that the measures 'fall short' of what they had been asking for.
The steel industry's reaction to the government measures has contrasted with that of the Aluminum Association of Canada.
'We find that these announcements strike the right balance between sending a strong signal towards focused and accelerated negotiations and using a measured approach through adaptive counter-tariffs and reciprocal procurement policies,' president and CEO Jean Simard said in a statement last week.
2:14
Canada announces retaliatory measures on US steel, aluminum tariffs
In its announcement, the government said it plans to ensure Canadian steel, as well as tariff-free products from 'reliable trading partners,' are prioritized for federal procurement and future public projects, as well as in supply chains for domestic sectors like the auto industry.
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Cobden on Thursday called those long-term commitments 'laudable.'
'However, without the right border actions, our steel producers will be unable to contribute to projects around our country because we will be a significantly reduced and weakened industry.'
The CBSA also praised Carney's commitment to 'adjust' Canada's counter-tariffs on U.S. steel and aluminum depending on the outcome of broader trade and security negotiations with the Trump administration.
Carney and Trump set a 30-day timetable for those talks at the G7 leaders' summit last week.
The government said in announcing the steel and aluminum measures that it intends to review its plan in 30 days, including input with industry groups.
The prime minister also announced last Thursday the creation of two separate task forces for steel and aluminum that will meet to monitor the situation and advise the government.
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