Canada scrambles to avoid being steel dumping ground

Canadian steel producers and government officials have formed an urgent working group tasked with heading off a possible flood of foreign steel into Canada as a result of tariffs imposed by the United States.

Canada is among the six countries that secured exemptions from U.S. President Donald Trump’s tariffs of 25 per cent on steel and 10 per cent on aluminum, which came into effect Friday. But domestic producers remain concerned that the tariffs will prompt a diversion of steel from foreign producers into the Canadian market.

The newly formed committee, which will meet in Ottawa for the first time Wednesday, will discuss strategies for improved monitoring and enforcement of trade laws, said Joe Galimberti, president of the Canadian Steel Producers Association (CSPA).

“We’re coming together out of a recognition that these are extraordinary times,” he said. “We don’t have a blanket tariff (on imports) like the United States so there is a risk of imported steel which was bound for the U.S. being diverted into Canada’s domestic market. This is something we have discussed with the government extensively and look for the government to address ...”

The European Commission initiated a safeguard investigation on Monday in response to the U.S. restrictions on steel and aluminum. It stated that its surveillance system had evidence that imports of certain steel products have been increasing. and “the trend may be even stronger now that the access to the US market has been limited ...” The investigation could result in “the imposition of import tariffs or quotas that would shield EU producers from excessive imports.”

Government-initiated safeguards are among the moves the CSPA has discussed with the government, Galimberti said. The group has not asked for a blanket tariff on all steel imports.

The CSPA has suggested boosting resources for Canada Border Services Agency so that trade investigations can be processed more quickly. It has also discussed having trade cases be initiated by the government rather than the industry.

Canadian government officials did not respond to a request for comment.