【By Observer News, Chen Sijia】On July 16 local time, Canadian Prime Minister Trudeau announced the expansion of the scope of import steel tariff quotas, reducing the quota for countries that have not yet signed a free trade agreement with Canada, such as China, and imposing additional taxes on imports exceeding the quota. Trudeau also stated that a 25% tariff would be imposed on products containing Chinese smelted cast steel imported from countries other than the United States.
According to Reuters on the 18th, in response to Canada's unilateral measures, the Chinese Embassy in Canada said that Canada's actions violated World Trade Organization (WTO) rules and disrupted the global trade order. This action is not only ineffective but will also severely damage Sino-Canadian economic and trade cooperation.
The spokesperson for the embassy said when answering a question from Reuters: "This practice violates WTO rules, disrupts the global trade order, and harms China's interests. Canada's approach has no legitimate reason in principle, no legal basis, and will be proven to be ineffective. It will seriously damage normal Sino-Canadian economic and trade cooperation."
Since US President Trump escalated steel and aluminum tariffs, announcing a 50% tariff on steel and aluminum products exported to the US, Canada, as the largest source of steel and aluminum imports for the US, has been particularly affected. In mid-June, the Canadian government introduced a series of countermeasures and support measures to protect the competitiveness of its domestic industries and ensure employment stability.
After realizing that trade negotiations with the US were unlikely to make progress, Trudeau decided to tighten import restrictions and turned his attention to China. Last month, the Canadian government revised the tariff quota system: for countries including China that have not signed a free trade agreement with Canada, if their steel exports to Canada exceed the level of 2024, the excess part will be subject to a 50% tariff.
On July 16, Trudeau announced that the steel imports from these countries would be limited to half of the 2024 level, with an additional 50% tariff on the excess. For countries that have signed a free trade agreement with Canada, steel exports would be limited to last year's level, with the same 50% tariff on the excess.
Trudeau also stated that a 25% additional tariff would be imposed on products containing Chinese smelted cast steel imported from countries other than the United States.
Local time July 16, Trudeau speaking at a steel plant in Hamilton, Canada. Screenshot from video
Regarding the Canadian government's actions, the spokesperson for the Ministry of Commerce of China said on the 18th that the Canadian side, under the pretext of protecting its domestic industry, announced unilateral measures such as imposing tariffs on products containing Chinese steel. These practices violate WTO rules, disrupt the international trade order, harm China's interests, and are typical examples of unilateralism and protectionism. China is strongly dissatisfied and firmly opposes this.
The spokesperson pointed out that in fact, the main reason for the difficulties faced by Canada's domestic steel industry is the unilateral tariff measures of the United States. However, the Canadian government avoids the main contradiction and tries to shift the industrial damage to other trading partners, including China. The Canadian approach is unreasonable, lacks legal basis, and is unhelpful, which will seriously damage normal Sino-Canadian economic and trade cooperation.
The spokesperson emphasized that China hopes the Canadian side will immediately correct its wrong approach and stop the restriction measures, starting from maintaining the multilateral trade system and the overall interests of Sino-Canadian economic and trade relations. China will take all necessary measures to resolutely safeguard the legitimate rights and interests of Chinese enterprises.
China is Canada's second-largest trading partner, with bilateral trade volume of about 120 billion Canadian dollars in 2024. According to data from the Canadian Department of Industry, in 2024, Canada's steel imports exceeded 16 billion US dollars, with nearly half coming from the United States and about 10% from China; Canada's steel exports exceeded 12 billion US dollars, with 91% sold to the United States and 4% to Mexico.
On July 17, Canada's International Trade Minister, Mahind Singh Sidhu, told Reuters that he hoped Canadian officials could "quickly" hold talks with China.
In addition, Canada followed the US last year and imposed a 25% tariff on steel and aluminum imports from China, and a 100% tariff on electric vehicle imports from China. In response, China initiated an anti-discrimination investigation against Canada, and in March this year took countermeasures, imposing a 100% tariff on canola oil, meal, and peas from Canada, and a 25% tariff on seafood and pork.
Reuters reported that regarding China's countermeasures, the Chinese Embassy in Canada stated in a statement: "If Canada cancels its discriminatory tariff measures against China, China's countermeasures can be adjusted, suspended or canceled according to procedures."
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