Ottawa Grants Exemptions on U.S., Chinese Steel and Aluminum Imports

Ottawa, The Gulf Observer: The Liberal government is facing criticism after exempting certain Chinese and U.S. steel and aluminum imports from retaliatory tariffs, a move that has drawn pushback from domestic producers.

A newly released order-in-council indicates that dozens of Canadian companies will now receive relief, allowing them to avoid paying tariffs on specific products deemed in short supply or essential under existing contracts.

The Canadian Steel Producers Association (CSPA) reacted strongly to the decision. “We are disappointed to see a broad exception to tariffs was given to U.S. producers for another two months, while we suffer from lack of access to their market,” CEO and President Catherine Cobden told CBC News. She further described the new exemptions for Chinese steel as “inconceivable,” noting that Canadian producers could replace this imported steel in the domestic market.

Canada currently imposes a 25 per cent tariff on Chinese steel and aluminum. The domestic steel industry has long urged Ottawa to take stronger action against what it considers unfairly traded imports. Cobden has also proposed that Canada double its 25 per cent retaliatory tariff on American steel to match the 50 per cent tariff imposed by the U.S. on Canadian steel.

Prime Minister Mark Carney, however, has ruled out immediate retaliation, citing “intense negotiations” with the Trump administration. “Canada is working to reach agreements to provide relief for sectors including aluminum, steel, and energy,” Carney stated.

Finance Minister François-Philippe Champagne defended the exemptions, emphasizing that they are designed to protect Canadian workers and families from the impact of countermeasures.

International trade lawyer William Pellerin, representing companies seeking these exemptions, highlighted the significance of the order-in-council. “It allows Canadian manufacturers to import foreign steel or aluminum as inputs for domestic production without paying the tariff. This is vital for competitiveness and cost management,” he said, adding that without such relief, many manufacturers would struggle to find replacement inputs, leading to higher prices.

While exemptions primarily support Canadian companies, they also benefit some Chinese and U.S. manufacturers, though the overall trade value affected remains unclear. Pellerin noted that the relief is meaningful for individual companies but is unlikely to influence broader U.S.-Canada trade negotiations.

Specific exemptions have been extended for U.S. products used in food and beverage packaging, agricultural production, health care, public safety, and national security for another two months. The order-in-council also lists companies granted particular exemptions, such as:

• Pizza Trucks of Canada (Winnipeg): U.S. portable pizza ovens for food trucks.
• Pivotech Doors (Ottawa): Rolling steel doors for building projects.
• Professional artist (Alberta): U.S. commercial-grade nylon carpet with UV-reactive custom patterns.

This week, Ontario Premier Doug Ford urged Prime Minister Carney to respond strongly to U.S. trade measures after Stellantis announced it would relocate Canadian Jeep production from Brampton, Ontario, to the United States.

Finance Minister Champagne, U.S. Trade Minister Dominic LeBlanc, and Canada’s top public servant Michael Sabia were in Washington this week seeking to advance negotiations on these trade issues.