FX.co ★ Canada Imposes Limits on Steel Imports, Exempting U.S. and Mexico

Canada has announced a suite of measures designed to bolster its steel industry in the face of a 50% tariff imposed by the U.S. These initiatives include setting limits on imported steel—excluding those from the U.S. and Mexico—before implementing substantial duties. Prime Minister Mark Carney stated that the government will revisit existing trade agreements and continue discussions with the Trump administration. Furthermore, by the end of July, Ottawa plans to levy a 25% tariff on steel imports originating from non-U.S. countries that contain steel initially melted and poured in China. "The United States' trade actions are reshaping global market dynamics and supply chains," Carney remarked, emphasizing that Canada is at significant risk. He highlighted that Canada has an "exceptionally open import market" and that foreign steel accounts for about two-thirds of its consumption, impacting sectors such as infrastructure, automotive, shipbuilding, and manufacturing.