(Bloomberg) -- A group of Canadian steel producers said the government’s plan to restrict foreign steel imports isn’t strong enough and warned that the industry is set to shed thousands more jobs because of US tariffs.
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Prime Minister Mark Carney’s government introduced a new tariff-rate quota last week to limit imports of steel and said it may adjust tariffs on US steel products on July 21, depending on the status of trade talks with the Trump administration.
The US has increased tariffs on foreign steel and aluminum to 50%. So far, Canada has decided not to match that, keeping its retaliatory levies at 25%.
“We have significantly dropped shipments and have experienced close to 1,000 job losses to date and are preparing for thousands more,” Catherine Cobden, chief executive officer of the Canadian Steel Producers Association, said in a statement Thursday. “We are concerned that the immediate measures fail to address the crisis we are in.”
The tariff-rate quota applies a 50% surtax on steel imports from countries without a free trade agreement with Canada that exceed last year’s levels of 2.6 million metric tons, Audrey Milette, spokesperson for the finance minister’s office, said Thursday in an emailed statement.
“What we announced is only the first step,” she said. “These are temporary and calibrated measures that could be expanded depending on the outcome of ongoing discussions with the United States. We are prepared to adjust our response as needed.”
The tariff-rate quota “will do little to support our industry,” said the association, which represents producers including Algoma Steel Group Inc. and ArcelorMittal SA.
The United Steelworkers union also criticized the government’s plan as “too narrow,” saying in a June 23 statement that it doesn’t apply to two-thirds of imports to Canada, including from countries including South Korea and Vietnam, “despite repeated dumping violations.”
The government also plans to unveil new tariff measures within weeks to address the risk of steel and aluminum dumping. This includes assessing a steel product’s origin based on where it was “melted and poured,” rather than the country it was exported from. Carney and his officials are worried that US tariffs will cause global manufacturers to divert their shipments to Canada.
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