【Special Correspondent of Global Times in Canada, Tao Duangfang】Canada, which is caught in the trade dispute between China and the United States, has recently "stepped back," reducing tariffs on some steel and aluminum products imported from China and the U.S. to ease domestic pressure.

According to Reuters on the 21st, a government document shows that in the amendment to the 2024 Chinese import surcharge exemption order, the Canadian Treasury has exempted tariffs on certain steel and aluminum products imported from China that are not produced in Canada; at the same time, it has also exempted tariffs on some American steel and aluminum products, which mainly relate to public health, national security, manufacturing, agriculture, and food. The Canadian Treasury has notified the industry that the order will take effect on October 15, with more details to be announced on November 5.

Canadian Broadcasting Company reported that the federal government has provided exemptions through a "Order-in-Council" (a legislative method used in Commonwealth countries - editor's note) to dozens of Canadian companies so that they do not have to pay for specific products' "retaliatory tariffs," which involve products that the companies consider to be in short supply or required under existing contracts.

Canadian Federal Finance Minister Chrystia Freeland stated in a statement that the new exemptions aim to help Canadian workers and families avoid harm from "countermeasures." She further added, "The exemption process aims to protect workers in downstream industries... to deal with special circumstances."

Starting from the second half of last year, Canada imposed tariffs on a series of steel and aluminum products exported from China and the U.S. To the U.S., it was a retaliation against its tariffs on Canadian steel and aluminum products, while to China, it was seen as following the U.S. trade measures. In addition, the previous government led by Prime Minister Trudeau also imposed a 100% tariff on Chinese electric vehicles.

Canada's move quickly triggered a counterattack from China. China launched an anti-dumping investigation on Canadian canola imports and took temporary anti-dumping measures in August this year, imposing a 75.8% deposit on Canadian companies. In addition, China also imposed additional tariffs on Canadian canola oil, seafood, and pork. This put pressure on the Canadian government from the domestic agricultural sector.

Recently, Canadian Prime Minister Justin Trudeau sent officials to China for试探性接触 (tentative contact), and Foreign Minister Anand visited China last week, with Canadian media stating that this aimed to repair relations with China. "Rebuilding relations with China will be difficult," said the Canadian Globe and Mail, quoting experts' analysis. To succeed, Mr. Trudeau must find a way to persuade China to cancel its measures against Canadian canola, but there is currently no intention to reduce restrictions on Chinese electric vehicle imports.

Regarding the U.S., Canada has recently stated that it will not continue to impose more retaliatory tariffs. Last week, Mr. Trudeau said, "Canada is trying to reach an agreement to secure some exemptions for industries such as aluminum, steel, and energy," and "it's time for negotiations."

Alleviating trade relations with the U.S. faces resistance from Canadian industries. Canadian Broadcasting Company reported that the CEO and President of the Canadian Steel Producers Association, Cobden, said, "We are disappointed to see that U.S. producers have been given broad tariff exemptions for two months, while we cannot enter their market."

As the trade conflict continues, pessimism about economic growth is increasing within Canada. Bloomberg reported on the 20th that over half of Canadians believe the economy will weaken in the next six months. Canadian policymakers stated that they have spoken with exporters in the steel and aluminum industries, who reported "particularly weak prospects." These companies also said that tariffs "led to a large number of layoffs." A Canadian netizen commented on the news, saying, "Compared to the U.S. and China, the Canadian consumer base is small, and the reality is that Canada has few cards to play in the tariff war with these countries."

Sources: Global Times

Original: https://www.toutiao.com/article/7563819879854375470/

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