(MENAFN- Kuwait News Agency (KUNA)) WASHINGTON, July 16 (KUNA) -- Canadian Prime Minister Mark Carney promised to further crack down on the amount of cheap, foreign steel entering the Canadian market by the end of the month, as the domestic industry continues to be clobbered by US President Donald Trump's tariffs.
Carney made the announcement in Hamilton on Wednesday, eliciting a sigh of relief from an industry that has already seen layoffs and lower production levels in the weeks since the US imposed steep import taxes.
In June, the government announced changes to the tariff quota system, which allows a set level of product to enter Canada at a lower tariff rate, by limiting steel imports from countries that don't have free trade agreements to 2024 import levels.
But those quotas were criticized by the industry as still being too high. Canadian steelmakers have long alleged that foreign companies are supplying steel to the Canadian market at ultra-low prices, a practice commonly known as dumping, making it hard for them to compete.
Carney said the quota changes "will ensure Canadian steel producers have a bigger share of the Canadian market."
Steel products from non-free trade agreement partners, which include China and Turkey, will see their tariff rate quota tighten to half of 2024 volumes.
A 50 percent tariff will be imposed on any imports beyond those levels, Carney said.
Ottawa is also moving to clamp down on steel from partners who do have free trade agreements with Canada, other than the US and Mexico.
The federal government said a 50 percent tariff will apply to imports surpassing 2024 volumes.
Carney said Canada will implement additional tariffs of 25 per cent on imports from all non-US countries containing steel melted and poured in China.
"Imports supply almost two-thirds of current Canadian consumption of steel, compared to less than one-third for the United States and less than one-sixth for the European Union," Carney noted.
Existing arrangements with the Canada-US-Mexico Agreement (CUSMA) will remain the same, he went on.
Carney announced no changes to US counter-tariffs as the two countries work toward their August 1 deadline.
Canada introduced limits on how much foreign steel produced in countries other than the US and Mexico can be imported, as the Liberal government tries to help a domestic sector reeling from President Trump's 50 percent tariffs on Canadian steel, according to the Wall Street Journal.
Carney noted that the series of import limits and the tariffs targeting steel products with Chinese links are required because the Canadian economy has been too reliant on foreign steel to meet the needs of the construction and manufacturing sectors.
He cited data indicating that two-thirds of total steel consumption in Canada comes from abroad, compared with one-third for the U.S. and one-sixth in Europe.
The trade landscape has shifted, and it's time to transform Canada's steel industry to meet this moment, he wrote on his X account.
"So, we're going to restrict and reduce foreign steel imports, and prioritize Canadian steel as we build major projects and homes across the country.
"To meet this growing demand, we're investing big in workers and production. It's time to build Canada strong - with Canadian workers and Canadian steel," the prime minister added. (end)
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