The decision by the Liberal government to exclude certain Chinese and American steel and aluminum imports from retaliatory tariffs is being met with resistance. A recent order-in-council reveals that several Canadian companies have been granted exemptions from paying tariffs on specific products that are deemed essential due to supply shortages or existing contractual obligations.
The Canadian Steel Producers Association has expressed disappointment over the broad exemptions granted to U.S. producers for an additional two months, while Canadian producers continue to face barriers in accessing the American market. The association’s CEO, Catherine Cobden, criticized the decision to grant new exemptions to importers of Chinese steel, stating that Canadian producers can adequately substitute the allegedly unfair Chinese steel.
In response to longstanding concerns within the steel industry regarding what is perceived as a surge in unfairly traded steel imports from China, calls have been made for stronger action from Ottawa. Cobden has urged the government to increase 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 respond forcefully to the U.S. amid Stellantis’ announcement of relocating Canadian Jeep production to the United States. However, Carney indicated that retaliatory measures are not currently being considered during ongoing negotiations with the Trump administration. Finance Minister François-Philippe Champagne highlighted that the exemptions aim to support Canadian workers and families by mitigating the impact of countermeasures.
According to international trade lawyer William Pellerin, the exemptions provided by the order-in-council offer significant relief to Canadian manufacturers by allowing them to import foreign steel or aluminum for production without incurring tariffs. While benefiting Canadian companies, the exemptions also extend to Chinese and American manufacturers, although the exact impact on trade values remains unclear.
The government has extended exemptions for U.S. products used in food and beverage packaging and added a new exemption for agricultural production. Specific companies, such as Pizza Trucks of Canada and Pivotech Doors, have received exemptions for importing American goods without tariffs. Additionally, efforts to advance trade discussions were underway this week in Washington, involving key officials including Champagne, U.S. Trade Minister Dominic LeBlanc, and Canada’s top public servant Michael Sabia.