A government document shows that Canada has provided tariff exemptions for some steel and aluminum products imported from the United States and China to help domestic enterprises impacted by the dual-track trade war.
According to Reuters on Monday (October 20), Canadian Prime Minister Mark Carney is currently negotiating with US President Trump. The US had previously imposed tariffs on Canadian steel and aluminum products. Carney’s team also met with Chinese counterparts last week to seek exemptions from the tariffs imposed by China on Canadian agricultural products.
A document released by the Canadian Department of Finance last Friday (October 17) indicated that, as a modification to the 2024 additional tariff exemption for Chinese imported goods, the Department of Finance has granted tariff exemptions for some steel and aluminum products imported from China and not produced in Canada.
Previously, on July 31, Canada imposed a 25% additional tariff on steel and aluminum products from China to address the global overcapacity issue. This tariff exemption specifically targets products affected by the additional tariffs, aiming to provide relief for multiple Canadian companies claiming shortages domestically or the need to fulfill existing contracts.
The notice sent to the industry by the Department of Finance indicated that the exemption came into effect on October 15, with more details about the exemption set to be announced on November 5.
The document noted that the Department of Finance also waived tariffs on some US steel and aluminum products, primarily related to public health, national security, manufacturing, agriculture, and food packaging.
Despite the government’s intention to alleviate pressure on downstream industries, the move has sparked controversy domestically. As reported by the Canadian Broadcasting Corporation (CBC), the Canadian Steel Producers Association opposes exempting Chinese steel imports, arguing that domestic producers are capable of replacing these imported materials and questioning the government’s effectiveness in addressing “unfair trade” in steel.
Finance Minister François-Philippe Champagne told reporters on Monday, “The tariff exemption program is designed to protect businesses in downstream industries… to address specific circumstances.”
He stated that these are very specific products necessary for maintaining the supply chain in Canada, and the impact on the total amount of retaliatory tariff collection is minimal.
Previously, Canada has faced economic pressure due to tariffs impacting exports to the United States and China. Carney is actively working towards reaching an agreement with Trump, as evidenced by the removal of many retaliatory tariffs on imports from the US by his predecessor.
Trade reports suggest that while Canada removed the majority of retaliatory tariffs on US goods on September 1, tariffs on steel, aluminum, and automobiles remain in place, serving as a countermeasure against ongoing US taxation on these industries. The specific exemptions for US steel and aluminum products are seen as an “exceptional treatment” by the Canadian government to maintain the supply chains of specific domestic industries during the ongoing tense negotiations.