The Canadian government has exempted dozens of companies from paying retaliatory tariffs on certain Chinese and US steel and aluminum imports, drawing sharp criticism from domestic steel producers.
The exemptions, outlined in a new order-in-council, cover certain products that companies claim they cannot source domestically, or require to fulfill existing contracts. The relief allows Canadian manufacturers to import foreign steel and aluminum without paying the countermeasure tariffs Canada imposed during the ongoing trade dispute with the United States.
The Canadian Steel Producers Association strongly criticized the decision, with leaders expressing disappointment and calling it “inconceivable,” particularly regarding Chinese steel exemptions.
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CEO Catherine Cobden said Canadian producers can replace the imported steel and argued the exemptions undermine the domestic industry while US markets remain largely closed to Canadian products.
Ottawa currently imposes a 25% tariff on Chinese aluminum and steel, along with retaliatory tariffs on US steel, aluminum, and automobiles following President Donald Trump’s 50% tariff on Canadian steel.
Finance Minister François-Philippe Champagne defended the exemptions as necessary to support Canadian workers and families. International trade lawyer William Pellerin told CBC News that the relief is critical for manufacturers who would otherwise struggle to source materials competitively, adding that without the exemptions, prices would have increased.
The exemptions cover a range of uses, from food and beverage packaging to healthcare and public safety applications. Ottawa granted individual companies across Canada specific exemptions for items ranging from portable pizza ovens to commercial carpeting.
Prime Minister Mark Carney declined to impose additional retaliatory measures, saying Canada is engaged in “intense negotiations” with the Trump administration seeking relief for key sectors. Canadian officials were in Washington last week for trade talks.
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