CCC: Dissecting Steel and Aluminum Tariffs

Last year, the U.S. Department of Commerce initiated an investigation into whether steel and aluminum imports were impairing America’s national security. The investigation’s recommendations were released in February and proposed a number of measures, including a mix of tariffs and quotas on steel and aluminum exports from around the globe. President Trump opted to impose global tariffs of 25% on steel products and 10% on aluminum products that are entering the U.S. [Canada] received a temporary exemption—along with the European Union and Mexico—until June 1. The Canadian Chamber of Commerce’s position continues to be that Canada should be fully and permanently exempted from any tariffs, quotas or other measures designed to reduce the cross-border flow of steel and aluminum products. Canadian imports to the U.S. do not pose a national security threat. In fact, Canadian aluminum is integrated into the U.S. defence industry to allow America to build its military hardware. In the case of steel, Canada is the top export destination for U.S. steel products, with trade roughly balanced between our countries. The Chamber applauds the federal government for its firm stance on this issue in opposing U.S. pressure for Canada to accept export restrictions. We also fully support the government’s position to oppose any links between these tariffs and the NAFTA negotiations. Such a connection would only be an unhelpful distraction from what should be our main focus. At the end of the day, it is about providing certainty for business. This means no arbitrary implementation of tariffs or quotas and ensuring the rules are consistently enforced.