The Canadian government is preparing new measures to prevent a potential flood of steel imports from global producers seeking to avoid U. S. tariffs, according to people familiar with the plans.
The Canadian government is preparing new measures to prevent a potential flood of steel imports from global producers seeking to avoid U. S. tariffs, according to people familiar with the plans. The Canadian dollar weakened and shares in Stelco Holdings Inc. soared.
The measures are said to be a combination of quotas and tariffs aimed at certain countries including China, said the people, asking not to be identified because the matter isn’t public. The moves follow similar “safeguard” measures being considered by the European Union aimed at warding off steel that might otherwise have been sent to the U. S. It comes alongside Canadian counter-tariffs on U. S. steel, aluminum and other products set to kick in on July 1.
The steps intensify the fallout from U. S. President Donald Trump ’s trade fight, in particular U. S. tariffs of 25 percent on steel and 10 percent on aluminum that hit Canada, the EU and other nations. The moves have prompted retaliation from the U. S.’s biggest trading partners, and forced companies like Harley-Davidson Inc. to shift production .
The Canadian measures are expected to include new quotas on certain steel imports to prevent dumping, with tariffs applied above that threshold, the people said. The announcement could come as early as next week, though the government hasn’t finalized its plans, the people said. A spokesman for Finance Minister Bill Morneau declined to comment. Representatives for Foreign Minister Chrystia Freeland, who handles U.
