Ontario Construction News staff writer
The Canadian Steel Producers Association and the Aluminium Association of Canada have issued a joint statement calling on the federal government to impose tariffs on Chinese overcapacity.
According to the joint statement, the tariffs are needed to protect Canadian steel and aluminium industries from Chinese overcapacity, which is a threat to the Canadian economy and jobs.
“Canada’s allies, including our CUSMA partners the United States and Mexico, have recognized the devastating impacts of Chinese overcapacity and are moving to impose strict and timely tariffs to stem the flow of Chinese steel and aluminium into their markets,” said Catherine Cobden, President and CEO of the Canadian Steel Producers Association. “Through this consultation process, Canada has an opportunity to align itself to our North American partners to ensure we live up to the trade partnerships we have forged over the past decades.”
“Failure to act exposes Canada to becoming the North American entry point for steel, aluminium as well as EVs from China’s high carbon excess capacity,” said Jean Simard, President and CEO of the Aluminium Association of Canada. “Preventing such a situation is part of a shared commitment with our trading partners, Mexico and the United States.”
The two industries employ more than 31,000 Canadians and contribute over $27 billion to the Canadian economy. The joint statement asserts that the tariffs are a necessary step to ensure Canada can live up to its trade partnerships with Canada, the United States, and Mexico.
“Our industries therefore call on the Government of Canada to act swiftly and take a holistic approach by including steel, aluminium and EVs in a single tariff package fully aligned with our largest trading partner,” said Cobden. “Relying solely on the use of traditional trade remedy actions or lengthy investigations would leave Canada far behind its trading partners, and highly vulnerable.”
“A CUSMA full tariff alignment for aluminium and steel should be seen as part of a comprehensive package of measures including EVs to be put in place against China,” said Simard. “For steel, at least 25% tariffs should be imposed on all melted and poured Chinese steel entering Canada. For aluminium, full alignment in scope and quantum with final US Section 301 tariffs on imports of Chinese aluminium products.”
“Our hope is that Canada recognizes the strategic importance of the steel and aluminium sectors and the workers and families our industries support,” said Cobden. “Taking this action would protect Canada from the real threat of unfair trade to our economic prosperity and to our trading relationships in North America.”