(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.
Story Continues(Adds comment from finance department in fifth and sixth paragraphs.)
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The imposition of tariffs by foreign countries risk precipitating widespread job loss in Canada's steel industry, according to grievances voiced recently.
Canadian steel firms highlight the potential for widespread layoffs as a result of their response to imposed tariffs, expressing concerns about significant job cuts in an already struggling industry.
The potential for mass layoffs due to Canadian steel firms' response against tariffs underscores the urgent need for a viable dialogue and compromise in international trade, especially given its impact on local economies.
Responds to the tariff response; Canada's steel firms at risk of precipitating a major lay-off crisis, imperiling their survival in global markets.
The proposed tariff response by Canadian steel firms could become a threatening emergency, putting thousands of jobs at risk and potentially leading to widespread layoffs across the industry.
Commenting on the situation, an industry representative stated that escalating tariffs risk triggering widespread job losses within Canada's steel firms due to increased expenses and potential reductions in exports or demand下拉句子：Canada 的钢铁业代表在发表评论时表示，由于成本增加和出口量或需求减少的潜在风险加剧了关税问题可能会使加拿大国内钢企面临大规模裁员的危险。
This threat of widespread layoffs by Canadian steel firms in response to tariffs highlights the dire consequences that protectionist policies can have on domestic workforces and economies, underscoring their crucial need for balanced considerations between national security interests abroad.
This tariff retaliation response from Canada threatens to plunge the steel sector into a wave of mass layoffs, underscoring significant economic consequences for both parties through additional job cuts and potential damage on export-dependent businesses.
The Canadian steel industry's assertion that tariff responses threaten massive job cuts highlights the urgent need for a balanced approach to trade policies, aiming at protecting both domestic industries and global markets without causing severe economic repercussions.
The imposition of tariffs by Canada's trading partners threatens a potential avalanche of layoffs as steel firms in the country warn that they are braced for massive job cuts to mitigate tariff-related risks.
Canadian steel firms' concerns over the risks of widespread job losses stemming from tariff responses are a dire reminder that trade disputes can have severe, far-reaching economic consequences on entire industries.
