The move, announced Friday, will limit the amount of steel shipped to Canada from countries without free trade zones. Countries will be subject to higher duties if they exceed the set quota. The aim is to prevent the flow of excess steel into the Canadian market.
This step comes after the US raised tariffs on foreign steel imports from 25% to 50% last month. The high US tariffs have negatively affected sales of Canada's largest steel producers in the US market. Steel companies started to turn to the Canadian market to compensate for their losses in the US. In response, industry lobbies called on the Canadian government to protect the domestic industry.
Large producers such as Algoma Steel stated that while they used to sell 50-60% of their products to the US in the past, this ratio has now fallen below 50% and the impact of the high US tariffs continues.
According to official data, Canada imported about 8.3 million tons of steel in 2024, a decrease of 5.5 % compared to 2023. The country exported 6.4 million tons of steel, mainly to the United States.
A spokesperson for the Ministry of Finance noted that 2.6 million tons were imported into Canada in 2024 from countries without free trade agreements. The new measure will contribute to the stability of the Canadian market, prevent excessive imports of steel from third countries and reduce negative impacts on importers and end users, the ministry emphasized in a statement.
The tariff quota covers five main steel product groups: flat steel, long steel, pipe and tube, semi-finished products and stainless steel. The new duty will be in addition to existing tariffs and will be on par with the 50% import duty imposed by the US.
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