The decision by the Liberal government to exclude certain Chinese and U.S. steel and aluminum imports from retaliatory tariffs has sparked criticism. A recent order-in-council revealed that Ottawa has provided relief to numerous Canadian companies, enabling them to avoid paying additional costs due to retaliatory tariffs on specific products deemed essential or scarce under existing contracts.
The Canadian Steel Producers Association has expressed disappointment over the broad exemptions granted to U.S. producers for an additional two months. Catherine Cobden, the association’s CEO and president, conveyed concerns about the lack of reciprocity in market access, particularly with the U.S., while emphasizing the impact on Canadian producers. She highlighted the apparent issuance of new exemptions for Chinese steel importers, which she deemed unfair and urged for domestic steel replacement.
The steel industry has long urged the government to take a stronger stance against China’s influx of allegedly unfairly traded steel imports, with Canada already imposing a 25 percent tariff on Chinese steel and aluminum. Cobden also called for doubling the retaliatory tariff on American steel to match the 50 percent 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 United States. However, Carney disclosed that amid intense negotiations with the U.S., immediate retaliation was not on the table, as Canada seeks concessions for crucial sectors like aluminum, steel, and energy.
Finance Minister François-Philippe Champagne defended the exemptions as a measure to safeguard Canadian workers and families from adverse impacts caused by countermeasures. International trade lawyer William Pellerin explained that companies seeking these exemptions must meet stringent conditions outlined in the order-in-council. He emphasized the significance of exemptions that allow Canadian manufacturers to import foreign steel or aluminum without incurring tariffs, which directly impacts their competitiveness and pricing.
While the exemptions benefit Canadian companies, they also extend relief to select Chinese and U.S. manufacturers, though the exact trade value remains unspecified. Pellerin noted that while the exemptions offer meaningful relief to Canadian firms on a case-by-case basis, they may not significantly influence broader negotiations with the U.S. The government has further extended exemptions for U.S. products used in various sectors, including food and beverage packaging and agricultural production.
Specific companies across Canada have also received individual exemptions, such as Pizza Trucks of Canada, Pivotech Doors, and a professional artist in Alberta, allowing them to import specific U.S. products without tariffs. Meanwhile, high-level officials, including Champagne, U.S. Trade Minister Dominic LeBlanc, and Michael Sabia, Canada’s top public servant, have been engaged in discussions in Washington to advance trade talks.