Features
Canada slaps tariffs on Chinese steel, aluminum, EVs
Written by Ethan Bernard
August 27, 2024
Canada has announced a 25% tariff on Chinese steel and aluminum, along with a 100% tariff on Chinese-made EVs.
“Canadian workers and critical sectors, including steel and aluminum … are facing an intentional, state-directed policy of overcapacity, undermining the Canada’s ability to compete in domestic and global markets,” Chrystia Freeland, deputy prime minister and minister of finance, said in a statement on Monday.
She noted this was why the government was moving forward to “level the playing field, protect Canadian workers, and match measures taken by key trading partners.”
As previously reported, Canada’s steel and aluminum industries had called for tariff alignment with the US.
Steel, aluminum tariffs
Canada’s federal government intends to apply 25% tariffs on imports of steel and aluminum products from China, effective Oct, 15, 2024, according to the statement.
An initial list of goods was released Monday for public comment, and can be found here. The final list of goods subject to the surtaxes will be announced by Oct. 1.
EV tariff
The 100% tariff on all Chinese-made EVs will be effective Oct. 1. This includes electric and certain hybrid passenger automobiles, trucks, buses, and delivery vans.
CSPA lauds move
The Canadian Steel Producers Association (CSPA) cheered the move by the government.
“Our industries strongly support and welcome today’s announcement by the Government of Canada that recognizes the strategic importance of steel and aluminum to Canada’s economic security interests,” Catherine Cobden, president and CEO of the CSPA, said on Monday.
She made the remarks in a joint statement with Jean Simard, president and CEO of the Aluminum Association of Canada.
“Moving towards the implementation of these measures, our sectors will continue to work closely with the government and all political parties to ensure the details of these measures protect Canada’s trade and economic interests,” the statement continued.
Editor’s note: This is an update of a previous article.
Ethan Bernard
Read more from Ethan BernardLatest in Features
SMU Community Chat replay now available
The latest SMU Community Chat webinar reply featuring Timna Tanners, managing director of equity research for Wolfe Research, is now available on our website to all members. After logging in at steelmarketupdate.com, visit the community tab and look under the “previous webinars” section of the dropdown menu. All past Community Chat webinars are also available under that selection. If […]
SMU Community Chat: June 25 With AGC Chief Economist Ken Simonson
We’ll have a lot to talk about because construction is at the intersection of so many of today’s hot-button issues. The main question: Will construction thrive or dive in the rest of ’25? (Nothing wrong with a rhyme, even in serious times.)
Former Nucor CEO David ‘Dave’ Aycock passes at age 94
Steel industry veteran David ‘Dave’ Aycock died on Saturday at the age of 94.
Apparent steel supply edged lower in April, remains strong
The amount of finished steel that entered the US market in April declined 3% from March but remained at elevated levels, according to SMU’s analysis of Department of Commerce and American Iron and Steel Institute (AISI) data.
Final Thoughts
Even before the news about Mexico, I didn’t want to overstate the magnitude of the change in momentum. As far as we could tell, there hadn’t been a frenzy of new ordering following President Trump’s announcement of 50% Section 232 tariffs. But higher tariffs had unquestionably raised prices for imports, which typically provide the floor for domestic pricing. We’d heard, for example, that prices below $800 per short ton for hot-rolled (HR) coil were gone from the domestic market – even for larger buyers.