By CRM staff
Toronto, Ontario -- August 15, 2018 -- With an increase in the amount of imported steel crossing over the Canadian border, in response Canada might be putting tariffs on foreign steel products soon, Global News reported.
Finance Minister Bill Morneau announced the news of the potential safety measures in front of media members at a steel factory in Hamilton, Ont. yesterday. Morneau explained that he would be in talks with Canadian steel industry stakeholders over the next couple weeks to try to best figure out how to place safeguards on certain types of steel products, in an effort to prevent foreign products from flooding the market.
The products Morneau was referring to are as follows: steel plate, concrete reinforcing bar, energy tubular products, hot-rolled sheets, pre-painted steel, stainless steel wire and wire rod.
Canada’s steel industry was left in a tough spot earlier this year after President Donald Trump announced he would be placing 25 percent tariffs on foreign steel. The decision resulted in a loss of exported steel for the Canada and many question marks about the future that have still been left unanswered.
As for now, the Canadian government is doing what it can to try and protect the steel industry from further loss.
“We’ve seen increases in imports, that’s an important reason why we’ve come forward today with seven products that we’re consulting on,” Morneau said.
“That surge in imports leads us to be concerned.”
According to the World Trade Organization, provision safeguard measures should be presented in the form of refundable tariff increases. The WTO also cautions their use, stating that the situation must warrant circumstances that would be “difficult to repair,” and on the basis that there is “clear evidence that the imports have caused or threaten to cause serious injury.”
It will be up to the Canadian government to present a strong enough case to justify going forward with the application.
“Our government believes that the tariffs levied by the United States represent an exceptional circumstance and that’s why provisional safeguards are being considered,” Morneau said.
“This action today, this consultation, is exceptional. We find ourselves in an exceptional situation where we need to think about how we keep the market stable in the long term,” he said.