The Canadian government is receiving criticism for excluding certain Chinese and U.S. steel and aluminum imports from retaliatory tariffs. A recent order-in-council reveals that Ottawa has granted exemptions to numerous Canadian companies to alleviate the impact of retaliatory tariffs on specific items that are deemed essential or scarce. This move has drawn disapproval from the Canadian Steel Producers Association.
The Association’s CEO and president, Catherine Cobden, expressed disappointment over the broad exemptions granted to American producers for an additional two months while Canadian producers face restricted access to the U.S. market. Cobden finds it concerning that Canada has extended exemptions to importers of Chinese steel, which she deems unfair and believes Canadian producers can replace with domestic steel.
Calls from the steel industry for stronger action against China’s alleged unfair trade practices have been ongoing, with Canada imposing a 25% tariff on Chinese aluminum and steel. Cobden has urged Ottawa to double the current 25% retaliatory tariff on American steel to match the 50% tariff imposed by U.S. President Donald Trump on Canadian steel.
Ontario Premier Doug Ford recently urged Prime Minister Mark Carney to retaliate against the U.S. following the relocation of Canadian Jeep production to the U.S. Carney, however, has stated that retaliatory measures are not on the immediate agenda as Canada engages in intense negotiations with the Trump administration to secure relief for sectors like aluminum, steel, and energy.
The Finance Minister, François-Philippe Champagne, described the exemptions as a means to protect Canadian workers and families from adverse effects caused by countermeasures. International trade lawyer William Pellerin highlighted the significance of exemptions that allow Canadian manufacturers to import foreign steel or aluminum without incurring tariffs, enabling them to maintain competitive pricing and production.
While these exemptions benefit Canadian companies, they also extend relief to certain Chinese and U.S. manufacturers. The value of trade impacted by these exemptions remains unclear. Pellerin noted that while the exemptions provide meaningful relief for Canadian companies, they may not significantly influence broader negotiations with the U.S.
The government has extended exemptions for U.S. products used in food and beverage packaging production and added a new exemption for agricultural production. Various companies, including Pizza Trucks of Canada, Pivotech Doors, and a professional artist in Alberta, have received specific exemptions for importing American goods without tariffs for their respective projects.
High-level Canadian officials, including François-Philippe Champagne, U.S. Trade Minister Dominic LeBlanc, and Michael Sabia, have been engaged in discussions in Washington to advance trade talks and seek resolutions for key industries like automotive, lumber, steel, and aluminum.
