Introduction: The US Implements Tariffs on Canadian Steel
On March 4, 2025, the Canadian Steel Producers Association voiced its opposition to the recent implementation of tariffs on Canadian steel by the United States. Catherine Cobden, President and CEO of the CSPA, issued a powerful statement condemning the move, highlighting its detrimental economic impact not only on Canadian workers but also on American workers and families. The US decision to impose tariffs on Canadian steel and other products is seen as both unjust and economically harmful for the broader North American steel industry.
Catherine Cobden expressed:
"The Trump Administration’s determination to enact tariffs on every Canadian product entering the United States, including Canadian steel, is completely unwarranted. It will bring painful economic repercussions to both American and Canadian workers, their families, and communities."
This move by the United States comes as part of ongoing trade tensions between the two countries, despite their longstanding trade relationship and cooperation under the United States-Mexico-Canada Agreement (USMCA), signed in 2020 under President Donald Trump.
USMCA and Trade Cooperation: A History of Partnership
Canada has been a consistent and reliable trading partner to the United States for decades, particularly in the steel sector. The USMCA, which replaced the North American Free Trade Agreement (NAFTA), was a crucial agreement that further solidified trade ties between the two nations. Canada has also aligned itself with the US on trade measures that protect their steel industries, such as the imposition of 25% tariffs on Chinese steel to combat unfair practices and promote fair trade.
Under the USMCA, over 95% of the steel supplied by Canada to the United States is sourced from within the USMCA region. This significant trade cooperation has benefited both countries' steel industries, with US companies relying on Canadian steel for their production processes.
However, the new tariffs, which were implemented just days before an expected second round of tariffs on both steel and aluminum, have been met with severe concern from the Canadian steel sector. These tariffs are seen as a betrayal of the longstanding, fair trade relationship between the two countries.
The Economic Fallout: A 50% Tariff on Canadian Steel
The latest round of tariffs implemented by the United States has resulted in Canadian steel facing a 50% tariff rate when entering the US. This level of tariff is comparable to the tariffs imposed on some of the worst offenders in global steel trade, such as China. This move is particularly shocking given Canada’s role as a trusted trading partner and the fact that its steel industry has long adhered to fair trade practices.
Cobden added:
"Combined, these tariffs would put Canadian steel at a 50% tariff rate when entering the United States, which is a comparable tariff level to some of the worst global steel trade offenders such as China. It is completely shocking for the United States to treat a long-time and fair trading partner in this manner."
The 50% tariff could devastate Canadian steel producers and their workers, many of whom are already facing uncertainty due to these trade measures. With thousands of workers dependent on the steel industry in Canada, the tariffs present a grave concern for families and communities across the country.
Canada’s Response: Immediate Retaliation and Urgent Measures
In response to the tariffs, Canada has taken immediate steps to retaliate. While this is seen as a necessary first response, the CSPA is calling for a more robust response to ensure Canadian steel remains competitive in both the domestic and international markets. Canada is urged to raise its own tariff levels to match those imposed by the US on Canadian steel and other products.
Cobden emphasized the need for stronger measures:
"While we applaud the first step of retaliation by Canada that has been taken immediately, steel must be included at the same tariff level as the United States for all products moving forward."
In addition to this, the CSPA is calling for further support from all levels of Canadian government to protect the domestic steel industry from the impact of these tariffs. This includes reinforcing the steel industry’s position within Canada, ensuring that Canadian steel is prioritized in domestic projects, and adopting a more aggressive stance on tariffs for countries like China, which is a major global steel producer.
Long-Term Protection: Supporting Domestic Steel and Tackling Global Trade Challenges
Canada must adopt a more proactive stance to support its steel industry. The CSPA advocates for a broader tariff regime on China and other countries that contribute to global steel overcapacity. By doing so, Canada can better protect its market for domestic producers, ensuring that Canadian-made steel is used in both domestic and international projects.
Furthermore, the CSPA is urging a “Buy Canada” approach to prioritize Canadian-made steel in public projects. This would not only benefit the steel industry but would also support Canadian workers and the economy by keeping steel production within the country.
Cobden concluded:
"We urgently need to extend our own tariff regime dramatically on China, other countries, and derivative products to recapture Canada’s market for domestic producers - combined with all levels of government adopting a Buy Canada approach. We are overdue for ensuring that Canadian-made steel is being prioritized for domestic projects."
Key Takeaways:
• US Tariffs on Canadian Steel: The US has imposed new tariffs, putting Canadian steel at a 50% tariff rate.
• USMCA Partnership: Canada has been a steadfast trading partner with the US, with over 95% of Canadian steel supplied under the USMCA framework.
• Economic Impact: The new tariffs will have serious economic repercussions for both Canadian and American workers, families, and communities.
• Retaliatory Measures: Canada has taken immediate steps to retaliate against the US tariffs but demands further actions to level the playing field.
• Domestic Protection Needed: CSPA urges Canadian governments to increase support for domestic steel producers and adopt a "Buy Canada" approach.
• Global Trade Challenges: Canada is calling for stronger tariffs on steel from China and other countries to protect the domestic market.
• Future Outlook: The Canadian steel industry faces significant challenges but remains resolute in advocating for fair trade practices and stronger protection measures.
