Trump Trade War - Canada Unveils Tariffs To Safeguard Steel Dumping

- Oct 12, 2018-

Canada on Thursday unveiled new quotas and tariffs aimed at thwarting the dumping of certain steel products, and convincing the Trump administration that it won’t be used as a back door for steel from China and other low-cost producers to enter the US. Beginning October 25, seven steel products entering Canada will be subject to quotas that are based on the average volume of imports during the past three years. According to Canada's Department of Finance, the new tariff will apply to heavy plate, rebar, energy tubular products, hot-rolled coil, pre-painted steel, stainless steel wire and wire rod when the level of imports from trading partners exceeds historical norms,
The provisional safeguards will remain in place for 200 days, pending an investigation by the Canadian International Trade Tribunal which will determine whether final safeguards are warranted.

Canada had launched a 15-day public consultation process in August on products that had seen recent increases in imports following a decision by the US in March to begin implementing a 25% tariff on steel imports under Section 232. In July, Canada began applying reciprocal tariffs on $16.6 billion of imports of steel, aluminum and other products from the US in response to the US metals tariffs, which Canada has repeatedly referred to as unjustified and counterproductive.

The goal of the so-called safeguard measures is to prevent a surge of overseas steel imports from entering Canadian markets. Canada’s steel industry has complained in recent months that US tariffs on steel and aluminum, imposed on national-security grounds and affecting most countries, have caused more shipments of cheap steel to be diverted to Canada from the US.

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