Canada is applying quotas and a 25 percent tariff on steel imports from China and other nations to avoid becoming a dumping ground for steel in the face of metal levies imposed by US President Donald Trump.
Canada is to erect new barriers to any flood of shipments of seven types of foreign steel, and is to issue refunds and exemptions to some Canadian firms on tariffs paid on imports from the US.
Canadian Prime Minister Justin Trudeau’s government faces continuing trade tensions with the US, which hit Canada, the EU and other nations with tariffs of 25 percent on steel and 10 percent on aluminum this summer.
Canada responded with its own tariffs on steel and aluminum and other products.
While Canada and the US reached a deal to replace the North American Free Trade Agreement (NAFTA) this month, the metals tariffs are to be dealt with separately. The sides remain at odds.
“We continue to discuss the Section 232 tariffs with our US counterparts. Our position remains clear and firm: These tariffs are entirely unjustified,” Adam Austen, a spokesman for Canadian Minister of Foreign Affairs Chrystia Freeland, said in an e-mail on Thursday. “The best economic outcome for both countries would be for the US to remove these tariffs.”
The new safeguard measures announced on Thursday affect seven types of products, up from three initially identified. The seven are: heavy plate, concrete reinforcing bar, energy tubular products, hot-rolled sheet, pre-painted steel, stainless steel wire, and wire rod.
Tariffs of 25 percent are to apply above an average of recent import volumes — in effect, a quota with tariffs applied above that level. The provisional tariffs take effect on Oct. 25.
The Canadian International Trade Tribunal is to hold an inquiry on whether to eventually finalize those.
The new quotas and tariffs would affect countries such as China and Turkey, but not Canadian steel imports from the US, which are already subject to other duties.
Mexico is partially exempted, while Chile, Israel and some developing countries are exempt.
Mexico expressed disappointment at its partial inclusion and said it would study if the measures violate Canada’s NAFTA commitments.
The “targeted relief” for Canadian firms includes refunds of import tariffs paid to date on steel and aluminum products that Canada is facing shortages of, for certain firms.
Those whose claims are accepted will be refunded tariffs paid so far, and will not have to pay them going forward — either until the end of this year, or indefinitely, depending on how severe the shortage.
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