Government Launches Consultations on Potential Trade Measures to Prevent Diversion of Steel Products into Canada

Issue

Today, the global steel market has a severe overcapacity which results in an excess of artificially low-priced foreign steel and contributes to depressed prices in Canada and globally, threatening Canadian steel workers and businesses. Following recent U.S. tariffs, there is a heightened risk that these steel products may flood the Canadian market putting both producers and workers at risk. 

Recognizing the harm that increased imports into Canada may cause to Canadian steel producers and workers, the Government of Canada is launching a public consultation on possible trade measures to protect against the potential diversion of steel products into the Canadian market as the result of recent U.S. trade measures.

Potential new trade measures would complement measures recently announced by the Government of Canada to support Canadian steel and aluminum workers and industries. As part of a dollar-for-dollar approach, and as a first response to the direct threat posed by U.S. tariffs, Canada imposed 25 per cent reciprocal tariffs, effective March 13, 2025, on a list of steel products worth $12.6 billion and aluminum products worth $3 billion, as well as on additional imported U.S. goods worth $14.2 billion, for a total of $29.8 billion. 

The federal government also applied a 25 per cent surtax on imports of steel and aluminum products from China, effective October 22, 2024. This measure was taken in response to China’s non-market policies and practices and to prevent trade diversion resulting from actions taken by Canadian trading partners. 

Beyond these recent actions, Canada maintains robust trade remedy and import monitoring systems to help protect against unfair trade from all sources and provides direct recourse for Canadian businesses and workers that are harmed by unfairly dumped and subsidized goods entering the Canadian market.

The federal government continues to monitor the trade situation closely and will take additional steps as needed to support our industries against these threats.

Information Sought on Potential Steel Import Measures

The government welcomes information from the Canadian steel industry, consumers, and other interested businesses and individuals in the following areas:

1. The scope of steel products that could be covered by a potential import measure (including recommended product groupings, product descriptions, and the applicable tariff classifications);
2. Evidence that demonstrates increased imports, or the threat of increased imports, of the identified steel products (by product or product group, if possible);
3. Evidence that imports are harming or threatening to harm domestic producers, such as job losses, reduced profitability, lost market share (by product or product group, if possible);
4. Views on imports from specific countries or regions;
5. Commercial and economic impacts of any potential measures (e.g., sourcing considerations, regional availability);
6. Views on the design, duration, and administration of any potential measures (e.g., proposed tariff rates and/or tariff-rate quota volumes);
7. Views on the use of specific trade policy tools;
8. Any additional substantiating information relevant to consideration of potential measures; and
9. Canadian company/industry association name, address, telephone number, and contact person.

Comments regarding possible measures to address trade diversion can be submitted by completing this form until April 21, 2025.

Additional supporting material can be sent to: fin.simaconsult-lmsiconsult.fin@fin.gc.ca

Comments and feedback may also be sent by mail to:

International Trade Policy Division (Trade Diversion Consultations)
Department of Finance
90 Elgin Street, 14th Floor
Ottawa, Ontario K1A 0G5

Please clearly indicate if information provided in the submission is commercially sensitive.

Privacy

Information received throughout this submission process is subject to the Access to Information Act and the Privacy Act and is collected under the authority of the Financial Administration Act. Participation in the consultation is voluntary and will have no impacts on services you receive from the Government of Canada. Personal information provided on this form is collected to enable individuals to participate in national and/or international outreach activities. Such activities facilitate information exchanges in areas of common interest to institutions and their stakeholders and allow for the sharing of knowledge, expertise, and best practices. More specifically, the government is seeking views from business, stakeholders, and all Canadians regarding the impacts of the application of tariffs to the goods listed in Table 1 below, as well as complementary response measures, in response to the U.S. tariffs.

The collection, use, disclosure and retention of your personal information is in accordance with requirements of the Privacy Act and is further described in the following Personal Information Banks – PSU 938 (Outreach activities) and PSU 914 (Public Communications). You have the right to access, and request correction of, your personal information. If you have any questions regarding the protection of your personal information, please contact the Department of Finance Canada's ATIP Coordinator at atip-aiprp@fin.gc.ca or Global Affairs Canada's ATIP Coordinator at dcp@international.gc.ca. If you are not satisfied with the response to your privacy concern, you have the right to file a complaint with the Office of the Privacy Commissioner of Canada regarding the department's handling your personal information.

In order to respect privacy and confidentiality, when providing your submission please advise whether you:

• Consent to the disclosure of your submission in whole or in part;
• Request that your identity and any personal identifiers be removed prior to publication; and,
• Wish any portions of your submission to be kept confidential (if so, clearly identify the confidential portions).