Leading Canadian steel and aluminum producers are urging the federal government to enact tariffs on imports of Chinese steel and aluminum to prevent Canada from becoming an unintended entry point for these metals into North America. This action is deemed necessary following the steps taken by the United States and Mexico, who have already implemented tariffs to mitigate the impact of Chinese dumping on their markets.
Representatives from the Canadian Steel Producers Association and the Aluminium Association of Canada, which include major companies like Stelco, Algoma Steel, Alcoa, and Rio Tinto, are spearheading this initiative. Their concern arises from recent developments in May when the U.S. imposed a 25% tariff on Chinese steel and aluminum to protect its domestic industries from unfair pricing practices. Subsequently, in July, Mexico introduced additional tariffs aimed at preventing Chinese steel and aluminum from circumventing U.S. tariffs by entering through Mexican borders.
The Canadian industry leaders argue that without matching tariff measures, Canada risks undermining the trade standards set by the Canada-United States-Mexico Agreement (CUSMA) and exposing its markets to unfairly priced imports. They stress the importance of Canada aligning its trade policies with those of its North American partners to maintain market stability and protect local jobs in the steel and aluminum sectors, which are vital components of the national economy.
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