Trade Cases
Canada Considering Safeguards on Steel Imports
Written by Sandy Williams
August 17, 2018
Canada is considering provisional safeguard measures on seven classes of steel imports to prevent foreign steel shipments from being diverted into Canada as a result of U.S. trade actions.
“We know that because of the unfair tariffs imposed by the United States, other countries will be seeking alternative markets for their steel products,” said Canadian Finance Minister Bill Morneau. “Canada is now at risk for a surge in imports of steel products, which could harm Canadian steel producers and workers. From our perspective this is just unacceptable.”
“Our government believes the tariffs levied by the United States represent an exceptional circumstance, and that’s why provisional safeguards are being considered,” said Morneau.
Statistics Canada reports iron and steel imports surged year-over-year in second-quarter 2018, especially from Brazil, Turkey and India.
Morneau said a 15-day consultation period, ending Aug. 29, will investigate whether certain steel imports are harming or threatening to harm Canadian producers. If a negative impact is found, tariffs and/or quotas may be imposed. The European Union has already implemented similar measures.
The categories subject to the potential provisional safeguards are: steel plate, rebar, energy tubular products, hot-rolled sheet, prepainted steel, stainless steel wire and wire rod.
Canadian steel producers would prefer to “return to a situation where there’s fair trade in steel,” said Joseph Galimberti, president of the Canadian Steel Producers Association. Measures taken by other countries are forcing Canada to respond, he said. “The government has to take similar steps to protect Canadian producers or face pretty serious consequences as a result of global diversion.”
Importers and fabricators fear that imposing safeguards will limit steel supply and drive costs even higher. Tom Whalen, CEO of the Petroleum Services Association of Canada, said companies that are hurt by the safeguards should receive compensation from Ottawa.
“If you’re building equipment, you’re going to use bits and pieces of pretty much all [the affected steel categories],” said Whalen.
Sandy Williams
Read more from Sandy WilliamsLatest in Trade Cases
Supply chains, end-users brace for impact from tariffs
Supply chains are working through what the tariffs mean for them
Breaking News: Commerce releases prelim anti-dumping duties in sweeping trade case targeting CORE imports
The US Commerce Department on Friday released preliminary anti-dumping margins in a trade case targeted imports of coated flat-rolled steel from 10 countries. Certain countries and mills were hammered while others were largely spared. Brazilian steelmaker CSN, for example, received a preliminary rate of 137.76%. Some Turkish mills – including Boreclik and ArcelorMittal Celik Ticaret – received no dumping margin at all.
CRU: Trump’s sweeping tariffs could derail the US met coal industry
Latest tariffs could lead to US metallurgical coal exporters (many already high-cost swing producers) being priced out of the market.
Tariff fallout: Canada strikes back, Stellantis idles, GM boosts production
Canada imposes auto tariffs, while automaker Stellantis temporarily idles some plants.
Commerce tags UAE with ‘critical circumstances’ in CORE trade case, South Africa spared
The Commerce Department has made a preliminary determination that ‘critical circumstances’ exist for certain imports of corrosion-resistant (CORE) flat-rolled steel from the United Arab Emirates (UAE). Commerce decided that critical circumstances did not apply to CORE from South Africa. The department also found that critical circumstances did not apply to CORE from UAE producers Al-Ghurair Iron & Steel LLC and United Iron & Steel Company LLC.