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Yahoo
2 days ago
- Business
- Yahoo
Ottawa to curb steel imports with tariff rate quota on certain countries
The federal department of finance says it will limit the amount of foreign steel coming into the country by placing a tariff on imports that exceed a certain threshold from countries that do not have a free trade agreement with Canada. The policy, known as a 'tariff rate quota,' announced on Friday allows non-free trade countries to send the same volume of steel to Canada that they sent in recent years, but applies a 50 per cent tariff if they exceed a designated threshold in any single quarter. The United States earlier this month raised tariffs on foreign steel from 25 per cent to 50 per cent. The result has effectively closed the U.S. as a longterm market to many of Canada's largest steel producers, as well as those in other countries. Now, steel companies say they are trying to grow their domestic sales at the same time as steel producers around the globe eye the Canadian market as a way to offset lost sales in the U.S. As a result, lobbyists have been pressing the Liberal government to protect the industry. 'The industry had asked repeatedly for significantly lower import levels on unfair traders to regain market share at home,' Catherine Cobden, chief executive of the Canadian Steel Producers Association (CSPA), which represents the 17 largest domestic steel companies, said in a release on Thursday. 'We believe it is long overdue.' But the CSPA has been clear that its members would like the federal government to enact policies that go further. Earlier this month, its board members travelled to Ottawa for a meeting with some key ministers. Michael Garcia, chief executive of Sault Ste. Marie, Ont.-based Algoma Steel Group Inc., said he asked the government for a tariff rate quota that would apply a 20 per cent tariff on steel from all countries, including those that have free trade agreements with Canada. 'That would be something that would have a meaningful impact on the health of the Canadian steel sector,' he said. Historically, Algoma has said it sells 50 per cent to 60 per cent of its products, measured by volume, into the U.S. Now, that level has fallen below 50 per cent and is still shrinking as the fallout from the U.S.'s 50 per cent tariffs continues. Canada imported 8.3 million tonnes of steel in 2024, a 5.5 per cent decline from 2023, according to the U.S. International Trade Monitor. Canada also exported about 6.4 million tonnes of steel, mainly to the U.S., where it is the largest source of foreign steel. A spokesperson for the Finance Ministry said that non-free trade agreement countries sent 2.6 million tonnes to Canada in 2024. 'This measure will help stabilize the Canadian market and prevent harmful diversion of foreign steel from third countries into Canada while minimizing impacts on Canadian importers and downstream users,' the Department of Finance said in announcing the measures. The new tariff rate quota will be apply to five categories of steel products: flat, long, pipe and tube, semi-finished and stainless steel. It would be additive to any existing surtaxes. At a rate of 50 per cent, it would be equal to the rate that is being applied to steel imports by the U.S. Prime Minister Mark Carney earlier this month announced a series of measures designed to address the impacts of U.S. tariffs on domestic steel mills, with the tariff rate quota being just one policy. Carney also signalled a forthcoming tariff based on the country of 'melt and pour' for steel. He also committed to using more domestically produced steel in public works projects. But curbing steel imports could have impacts that reverberate throughout the economy. Many of the country's smaller steel companies, which do not melt their own steel but instead rely on imported steel, say their products are thoroughly integrated into the Canadian economy: They cut or fabricate imported steel into rebar and other products that are used in housing and infrastructure and by various industries. Those companies have argued that the domestic steel mills cannot always accommodate their orders, forcing them to rely on imports. But several insiders said they were reluctant to speak publicly because they still rely on domestic mills and fear that speaking out against policies that limit imports could harm their business. Carney has created an industry-government steel task force to review the impact of the new tariff rate quotas in 30 days. Whatever the impact of the new policies have on steel imports, the U.S. tariffs have created what Cobden called a 'dire' situation for domestic steel mills, which melt their own steel. There have been an estimated 1,000 layoffs in the Canadian sector. Carney announces new measures to protect Canada's steel and aluminum industries ArcelorMittal to close Hamilton wire-drawing mill, cutting 153 jobs Garcia said everyone in the steel sector is hopeful that Carney will strike a trade deal with the U.S. by July 21, as was suggested during the G7 meeting that took place in Alberta in June. 'That's why everybody in the steel industry is watching that date closely,' he said. 'If that date passes, and there's no confidence that the 50 per cent tariff is going to be moved down in any significant way, that's going to have ramifications for the steel industry in a very significant way.' • Email: gfriedman@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Canada's steel producers tell government its tariff protection measures aren't enough
By Divya Rajagopal and Promit Mukherjee TORONTO (Reuters) -Canadian steel industry representatives told government officials in a meeting this week that their measures to protect the industry from the consequences of U.S. tariffs are insufficient, two of the representatives who attended the meeting told Reuters. On Thursday, steel producers met with Patrick Haley, assistant deputy minister for trade and finance, and other officials from the ministry, telling them the measures announced earlier this month do not protect the industry from steel dumping and could cause mass layoffs, the representatives said. U.S. President Donald Trump increased import duties on steel and aluminum to 50% from 25% earlier this month. Canada is the top seller of metals to the United States. In response, Canada announced a raft of measures, including establishing new tariff-rate quotas of 100% of 2024 levels on imports of steel products from non-free trade agreement partners. Industry representatives at the meeting asked the government to extend tariff quotas to all countries with unfair trade practices, even if they have free trade agreements. Europe and Asia have started diverting their products to Canada to avoid U.S. tariffs, making domestic steel uncompetitive, they said. "We don't think the measures announced meet our needs under this dire time," Catherine Cobden, President and CEO of the Canadian Steel Producers Association, told Reuters. Cobden attended the meeting with finance ministry officials on Thursday. The Canadian Steel Producers Association said in a separate statement on Thursday that, in its current form, the tariff-rate quota will do little to support its industry. Canada's steel industry has laid off 1,000 workers since the first U.S. tariffs in March, and more layoffs could be coming, the association said. Keanin Loomis, president of the Canadian Institute of Steel Construction, which includes steel manufacturers, fabricators, and constructors, said that Thursday's government meeting was heavily steel producers-focused, noting that finished steel products imported to Canada have no tariff protection. Loomis also attended the meeting. In a text response to Reuters, the Canadian Finance Ministry said that the measures it announced represent a comprehensive and strategic package to defend producers and workers, and were a first step. Prime Minister Mark Carney has threatened to increase counter-tariffs on U.S.-produced steel and aluminum if Canada does not reach a broader trade deal with Trump by July 21. Trump on Friday abruptly cut off trade talks with Canada over its new tax targeting U.S. technology firms. "These are temporary and calibrated measures that could be expanded depending on the outcome of ongoing discussions with the United States. We are prepared to adjust our response as needed," a spokesperson for the finance minister said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
5 days ago
- Business
- Reuters
Canada's steel producers tell government its tariff protection measures aren't enough
TORONTO, June 27 (Reuters) - Canadian steel industry representatives told government officials in a meeting this week that their measures to protect the industry from the consequences of U.S. tariffs are insufficient, two of the representatives who attended the meeting told Reuters. On Thursday, steel producers met with Patrick Haley, assistant deputy minister for trade and finance, and other officials from the ministry, telling them the measures announced earlier this month do not protect the industry from steel dumping and could cause mass layoffs, the representatives said. U.S. President Donald Trump increased import duties on steel and aluminum to 50% from 25% earlier this month. Canada is the top seller of metals to the United States. In response, Canada announced a raft of measures, including establishing new tariff-rate quotas of 100% of 2024 levels on imports of steel products from non-free trade agreement partners. Industry representatives at the meeting asked the government to extend tariff quotas to all countries with unfair trade practices, even if they have free trade agreements. Europe and Asia have started diverting their products to Canada to avoid U.S. tariffs, making domestic steel uncompetitive, they said. "We don't think the measures announced meet our needs under this dire time," Catherine Cobden, President and CEO of the Canadian Steel Producers Association, told Reuters. Cobden attended the meeting with finance ministry officials on Thursday. The Canadian Steel Producers Association said in a separate statement on Thursday that, in its current form, the tariff-rate quota will do little to support its industry. Canada's steel industry has laid off 1,000 workers since the first U.S. tariffs in March, and more layoffs could be coming, the association said. Keanin Loomis, president of the Canadian Institute of Steel Construction, which includes steel manufacturers, fabricators, and constructors, said that Thursday's government meeting was heavily steel producers-focused, noting that finished steel products imported to Canada have no tariff protection. Loomis also attended the meeting. In a text response to Reuters, the Canadian Finance Ministry said that the measures it announced represent a comprehensive and strategic package to defend producers and workers, and were a first step. Prime Minister Mark Carney has threatened to increase counter-tariffs on U.S.-produced steel and aluminum if Canada does not reach a broader trade deal with Trump by July 21. Trump on Friday abruptly cut off trade talks with Canada over its new tax targeting U.S. technology firms. "These are temporary and calibrated measures that could be expanded depending on the outcome of ongoing discussions with the United States. We are prepared to adjust our response as needed," a spokesperson for the finance minister said.
Yahoo
5 days ago
- Business
- Yahoo
Canada's steel producers tell government its tariff protection measures aren't enough
By Divya Rajagopal and Promit Mukherjee TORONTO (Reuters) -Canadian steel industry representatives told government officials in a meeting this week that their measures to protect the industry from the consequences of U.S. tariffs are insufficient, two of the representatives who attended the meeting told Reuters. On Thursday, steel producers met with Patrick Haley, assistant deputy minister for trade and finance, and other officials from the ministry, telling them the measures announced earlier this month do not protect the industry from steel dumping and could cause mass layoffs, the representatives said. U.S. President Donald Trump increased import duties on steel and aluminum to 50% from 25% earlier this month. Canada is the top seller of metals to the United States. In response, Canada announced a raft of measures, including establishing new tariff-rate quotas of 100% of 2024 levels on imports of steel products from non-free trade agreement partners. Industry representatives at the meeting asked the government to extend tariff quotas to all countries with unfair trade practices, even if they have free trade agreements. Europe and Asia have started diverting their products to Canada to avoid U.S. tariffs, making domestic steel uncompetitive, they said. "We don't think the measures announced meet our needs under this dire time," Catherine Cobden, President and CEO of the Canadian Steel Producers Association, told Reuters. Cobden attended the meeting with finance ministry officials on Thursday. The Canadian Steel Producers Association said in a separate statement on Thursday that, in its current form, the tariff-rate quota will do little to support its industry. Canada's steel industry has laid off 1,000 workers since the first U.S. tariffs in March, and more layoffs could be coming, the association said. Keanin Loomis, president of the Canadian Institute of Steel Construction, which includes steel manufacturers, fabricators, and constructors, said that Thursday's government meeting was heavily steel producers-focused, noting that finished steel products imported to Canada have no tariff protection. Loomis also attended the meeting. In a text response to Reuters, the Canadian Finance Ministry said that the measures it announced represent a comprehensive and strategic package to defend producers and workers, and were a first step. Prime Minister Mark Carney has threatened to increase counter-tariffs on U.S.-produced steel and aluminum if Canada does not reach a broader trade deal with Trump by July 21. Trump on Friday abruptly cut off trade talks with Canada over its new tax targeting U.S. technology firms. "These are temporary and calibrated measures that could be expanded depending on the outcome of ongoing discussions with the United States. We are prepared to adjust our response as needed," a spokesperson for the finance minister said.
Yahoo
6 days ago
- Business
- Yahoo
Canada Steel Firms Say Tariff Response Risks Mass Layoffs
(Bloomberg) — A group of Canadian steel producers said the government's plan to restrict foreign steel imports isn't strong enough and warned that the industry is set to shed thousands more jobs because of US tariffs. US Renters Face Storm of Rising Costs Mapping the Architectural History of New York's Chinatown US State Budget Wounds Intensify From Trump, DOGE Policy Shifts Squeezed by Crowds, the Roads of Central Park Are Being Reimagined Commuters Are Caught in Johannesburg's Taxi Feuds as Transit Lags Prime Minister Mark Carney's government introduced a new tariff-rate quota last week to limit imports of steel and said it may adjust tariffs on US steel products on July 21, depending on the status of trade talks with the Trump administration. The US has increased tariffs on foreign steel and aluminum to 50%. So far, Canada has decided not to match that, keeping its retaliatory levies at 25%. 'We have significantly dropped shipments and have experienced close to 1,000 job losses to date and are preparing for thousands more,' Catherine Cobden, chief executive officer of the Canadian Steel Producers Association, said in a statement Thursday. 'We are concerned that the immediate measures fail to address the crisis we are in.' The tariff-rate quota applies a 50% surtax on steel imports from countries without a free trade agreement with Canada that exceed last year's levels of 2.6 million metric tons, Audrey Milette, spokesperson for the finance minister's office, said Thursday in an emailed statement. 'What we announced is only the first step,' she said. 'These are temporary and calibrated measures that could be expanded depending on the outcome of ongoing discussions with the United States. We are prepared to adjust our response as needed.' The tariff-rate quota 'will do little to support our industry,' said the association, which represents producers including Algoma Steel Group Inc. and ArcelorMittal SA. The United Steelworkers union also criticized the government's plan as 'too narrow,' saying in a June 23 statement that it doesn't apply to two-thirds of imports to Canada, including from countries including South Korea and Vietnam, 'despite repeated dumping violations.' The government also plans to unveil new tariff measures within weeks to address the risk of steel and aluminum dumping. This includes assessing a steel product's origin based on where it was 'melted and poured,' rather than the country it was exported from. Carney and his officials are worried that US tariffs will cause global manufacturers to divert their shipments to Canada. (Adds comment from finance department in fifth and sixth paragraphs.) How to Steal a House Inside Gap's Last-Ditch, Tariff-Addled Turnaround Push Apple Test-Drives Big-Screen Movie Strategy With F1 America's Top Consumer-Sentiment Economist Is Worried Luxury Counterfeiters Keep Outsmarting the Makers of $10,000 Handbags ©2025 Bloomberg L.P.
