The Canadian government is facing opposition over its decision to exclude certain Chinese and U.S. steel and aluminum imports from retaliatory tariffs. A recent order-in-council reveals that Ottawa has provided relief to numerous Canadian companies, allowing them to avoid the impact of retaliatory tariffs on specific goods deemed scarce or essential under existing agreements.
The Canadian Steel Producers Association has expressed disappointment at the broad exceptions granted to U.S. producers for an additional two months, while Canadian companies continue to face barriers to accessing the American market. The association’s CEO, Catherine Cobden, criticized the new exemptions granted to Chinese steel importers, emphasizing that Canadian producers can easily replace the allegedly unfair steel in the market.
Amid calls from the steel industry for stronger action against China’s alleged unfair trade practices, Cobden has urged Ottawa to increase the 25% retaliatory tariff on American steel to match the 50% 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 Trump’s trade policies following Stellantis’ announcement of relocating Canadian Jeep production to the U.S. Carney, however, has ruled out immediate retaliation, citing ongoing negotiations with the U.S. administration to seek relief for key sectors like aluminum, steel, and energy.
Finance Minister François-Philippe Champagne defended the exemptions as a measure to support Canadian workers and families from adverse effects of countermeasures. Trade lawyer William Pellerin highlighted the importance of exemptions that allow Canadian manufacturers to import foreign steel or aluminum for production without incurring tariffs, ensuring competitive pricing and production continuity.
While the exemptions benefit Canadian companies, they also offer advantages to some Chinese and U.S. manufacturers. The extent of trade affected by these measures remains unclear. Pellerin noted that while the exemptions provide meaningful relief to Canadian firms, they may not significantly impact broader negotiations with the U.S.
The government has extended exemptions for U.S. products used in food and beverage packaging and agricultural production. Specific exemptions were granted to various Canadian companies, including Pizza Trucks of Canada, Pivotech Doors, and a professional artist in Alberta for custom-printed nylon carpet. Canadian officials, including Finance Minister Champagne, Trade Minister Dominic LeBlanc, and top civil servant Michael Sabia, have been engaged in talks in Washington to advance trade discussions.
