The Canadian government is receiving criticism for excluding certain Chinese and American steel and aluminum imports from retaliatory tariffs. A recent order-in-council reveals that Ottawa has provided relief to numerous Canadian companies, exempting them from paying tariffs on specific products due to shortages or existing contract requirements.
The Canadian Steel Producers Association expressed disappointment over the broad exemptions granted to U.S. producers while Canadian companies face limited access to the American market. The association’s CEO, Catherine Cobden, described the decision as “inconceivable” for granting exemptions to Chinese steel importers, which Canadian producers can replace with fair market alternatives.
The steel industry has urged Ottawa to take stronger action against China for what they perceive as unfair steel trade practices. Cobden also called for doubling the retaliatory tariffs on American steel to align with the tariffs imposed by U.S. President Donald Trump on Canadian steel.
Ontario Premier Doug Ford urged Prime Minister Mark Carney to retaliate against the U.S. following Stellantis’ announcement of relocating Canadian Jeep production to the United States. Carney, however, stated that retaliation is not imminent as Canada is engaged in intense negotiations with the U.S. administration to secure relief for sectors like aluminum, steel, and energy.
Finance Minister François-Philippe Champagne explained that the exemptions aim to support Canadian workers and families by preventing adverse impacts from countermeasures. International trade lawyer William Pellerin highlighted the importance of exemptions allowing Canadian manufacturers to import foreign steel or aluminum without tariffs, ensuring competitive pricing and production efficiency.
The exemptions not only benefit Canadian companies but also aid Chinese and American manufacturers, although the exact trade value impacted remains unclear. Pellerin noted that while the exemptions offer meaningful relief, they are unlikely to significantly influence broader negotiations with the U.S.
Several specific exemptions were granted to companies across Canada, such as Pizza Trucks of Canada, Pivotech Doors, and a professional artist in Alberta. Additionally, extensions were given for American goods used in healthcare, public safety, and national security sectors, aiming to facilitate trade and economic activities.
Champagne, along with U.S. Trade Minister Dominic LeBlanc and Canada’s top public servant Michael Sabia, were in Washington this week to advance trade discussions and seek mutual agreements.
