Source: Canada sees little chance of quick end to US metals tariffs

OTTAWA: Canada does not hold out much hope that Washington will quickly lift tariffs that it imposed on steel and aluminium exports and is resisting a US push to agree to strict quotas, two sources familiar with the matter said.

The administration of US President Donald Trump imposed the sanctions on Canada and Mexico in June, citing national security reasons. Although Canada and Mexico agreed a renewed continental trade deal last week, the measures remain in place. Canada is the single largest supplier of both aluminium and steel to the United States.

Washington worries that nations could try to ship supplies through Canada and pretend the metals had been produced in Canadian facilities. In a bid to address those concerns the Canadian government – acting on a promise it made in March – said it would impose new quotas and tariffs on imports of seven categories of steel from many countries to head off a potential rise in imports.

A tariff of 25 per cent will apply starting Oct 25, 2018 to imports “in cases where the level of imports from trading partners exceeds historical norms”, a government statement said.

Jerry Dias, head of Unifor, Canada’s largest private sector union, said the safeguards would keep out subsidised steel from China and South Korea.

“It’s also sending a message to the United States. Now that the issue is resolved, there’s no meaningful reason for the US to continue to punish the steel industry on both sides of the border,” he said in an interview.

The government of Canadian Prime Minister Justin Trudeau is pessimistic about the chances of the US tariffs being removed soon, said the sources, who asked to remain anonymous, given the sensitivity of the situation. — Reuters