Canadian steel and aluminum producers are calling on the government to impose new duties on Chinese products as soon as possible. They claim that metal from this country has flooded the local market and threatens jobs. This is stated in a joint statement by industry associations.
Katherine Cobden, President and CEO of the Canadian Steel Producers Association (CSPA), noted that the United States and Mexico have already taken appropriate measures.
“Canada’s allies, including our CUSMA partners, the United States and Mexico, have recognized the devastating effects of China’s overcapacity and are imposing stiff tariffs in a timely manner to stem the flow of Chinese steel and aluminum into their markets. Through this consultation process, Canada has the opportunity to join our North American partners to ensure that our trade partnerships are preserved,” she said.
As industry associations emphasize, in the absence of action, Canada could become the North American entry point for steel, aluminum, and electric vehicles from China’s high-carbon overcapacity.
According to the statement, if Canada relies solely on the use of traditional trade remedies or lengthy investigations, it risks being left behind by its trading partners and becoming vulnerable.
The associations propose to impose at least 25 percent duties on steel smelted and cast in China imported into Canada. As for aluminum, it should be fully consistent in scope and amount with the final U.S. Section 301 tariffs on Chinese aluminum imports.
According to Bloomberg estimates based on Statistics Canada data, in 2023, imports of Chinese ferrous metals and aluminum products totaled about 5.6 billion Canadian dollars ($4.1 billion), down from nearly 7.2 billion Canadian dollars a year earlier. However, this is almost 70% more than the average between 2010 and 2020. In quantitative terms, the volume of metals imported from China in 2023 was more than twice the average for these years.
In May of this year, Canadian steelmakers called on the authorities to take more active steps following the US announcement of tariff increases on certain Chinese steel and aluminum products.
