Notices
Canada’s steel and aluminum industries are key contributors to the Canadian economy, providing well-paying jobs and key inputs for other major industries, including energy, advanced manufacturing, construction, and auto-making.
In 2021, the Canadian steel industry employed over 23,700 workers and contributed $2.8 billion to Canada’s gross domestic product (GDP). For the same year, the Canadian aluminum industry employed approximately 11,000 workers and contributed $3.4 billion to our GDP.
The Canadian and United States (U.S.) steel and aluminum industries are deeply integrated, and underpin continental supply chains that strengthen the global competitiveness of the North American economy. Canada is a longstanding safe and secure supplier of steel and aluminum to the U.S. defence industry.
Canada imports more steel from the U.S. than any other country in the world, accounting for nearly 45% of U.S. exports. In 2021, $17.4 billion of steel was traded between Canada and the United States.
On aluminum, Canada and the U.S. share a highly integrated market with combined trade of $16.9 billion in 2021. About 90% of Canada’s primary aluminum production is exported to the United States, where it is used as an important input for further processing into products for U.S. domestic and export markets.
U.S. tariffs on Canadian steel and aluminum
On June 1, 2018, the U.S. imposed a 25 percent tariff on imports of Canadian steel and a 10 percent tariff on imports of Canadian aluminum under Section 232 of the Trade Expansion Act, which relates to perceived effect of imports on U.S. national security. In response, Canada imposed retaliatory tariffs against a proportionate amount of imports from the United States.
On May 17, 2019, the U.S. and Canada issued a joint statement announcing the elimination of the Section 232 tariffs against Canada and Canada’s countermeasures against the U.S., and the end to all related WTO litigation.
On August 6, 2020, the U.S. announced the imposition of tariffs of 10 per cent on imports of certain aluminum products from Canada, which took effect on August 16, 2020.
On September 15, 2020, the U.S. Trade Representative announced the return of tariff-free treatment of Canadian aluminum, effective September 1, 2020.
Steel Safeguards
For the period from May 13, 2019 to October 24, 2021, the Government of Canada imposed final safeguards in the form of tariff rate quotas (TRQs) on imports of certain heavy plate and stainless steel wire goods. These TRQs were administered by Global Affairs Canada by way of shipment-specific imports permits. Subsequently to the expiry of these safeguard measures, importers are no longer required to apply for shipment-specific import permits to import subject goods free of the safeguard surtax, and are to use General Import Permit No. 80 or 81, as applicable, for their shipments.
General Import Permit – Aluminum Products
In the context of global conditions affecting trade in aluminum, the Government of Canada has deemed it necessary to enhance Canada’s aluminum import monitoring capabilities. The addition of aluminum to the Import Control List under Item 83 and the General Import Permit No. 83 – Aluminum Products, came into force on September 1, 2019.
General Import Permits – Carbon and Specialty Steel Products
The Government of Canada has deemed it necessary to enhance Canada’s steel import monitoring capabilities by adding a reporting and record keeping requirement to the steel General Import Permits No. 80 and 81. Please refer to theNotice to Importers, Serial No. 1032for detailed information on these amendments including import requirements and procedures.
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- Statement by the Deputy Prime Minister on US tariffs on imports of Canadian aluminum
- Six Nova Scotian steel and aluminum companies benefit from advanced manufacturing machinery, robotics and modernization
- Joint Statement by Canada and the United States on Section 232 Duties on Steel and Aluminum
- Government Takes Further Steps to Protect Canada's Steel and Aluminum Workers and Industries
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- Canada stands up for our steel and aluminum workers and industry
- Finance Ministers and Central Bank Governors Reaffirm Importance of Open, and Rules Based Trade; Conclude G7 Meeting on Investing in Growth That Works for Everyone
- Address by the Honourable Chrystia Freeland, Minister of Foreign Affairs, on steel and aluminum tariffs imposed by the United States
- Remarks by the Prime Minister of Canada on steel and aluminum tariffs imposed by the United States
- Canada Bolsters Prevention of Transshipment and Diversion of Steel and Aluminum Products Through Country of Origin Marking Regime
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As an enthusiast and expert in international trade, particularly in the steel and aluminum industries of North America, I've extensively studied the intricate relationships between Canada and the United States concerning import regulations, tariffs, and their economic impact. My expertise spans various sources including governmental announcements, trade policies, industry reports, and analyses of the steel and aluminum markets.
The relationship between Canada and the United States in the steel and aluminum sectors is deeply interconnected, with both countries contributing significantly to each other's economies. In 2021, the Canadian steel industry employed over 23,700 workers and contributed $2.8 billion to Canada’s GDP. Meanwhile, the Canadian aluminum industry employed around 11,000 workers and contributed $3.4 billion to the GDP.
A critical event in recent years was the imposition of tariffs by the United States under Section 232 of the Trade Expansion Act. The U.S. imposed a 25 percent tariff on Canadian steel and a 10 percent tariff on Canadian aluminum in 2018, citing perceived national security concerns. Canada responded with proportional retaliatory tariffs. Subsequently, both countries engaged in negotiations leading to the removal of these tariffs.
Despite this, the steel and aluminum industries faced fluctuations due to ongoing trade disputes. The U.S. imposed additional tariffs on certain aluminum products from Canada in August 2020, which were later rescinded in September 2020.
Import controls and monitoring have been crucial aspects. Canada implemented General Import Permits No. 80 and 81 for steel products and General Import Permit No. 83 for aluminum products to enhance monitoring capabilities and regulate imports effectively.
Furthermore, the steel safeguards imposed by Canada on certain steel goods via tariff rate quotas (TRQs) expired on October 24, 2021. Importers are now required to use General Import Permit No. 80 or 81 for importing subject goods free of the safeguard surtax.
Recent governmental initiatives focused on supporting and protecting the steel and aluminum industries, aiming to safeguard Canadian workers and prevent unfair trade practices through stringent enforcement measures and trade regulations.
Articles, statements, and addresses by government officials such as the Minister of Small Business, Export Promotion, and International Trade, the Deputy Prime Minister, and the Minister of Foreign Affairs highlight ongoing efforts to address issues related to tariffs, protection of industries, and ensuring fair trade practices.
The intricate nature of these topics involves a network of governmental policies, trade agreements, industrial relations, and economic considerations that are vital for understanding the dynamics and impacts within the steel and aluminum industries in the context of international trade between Canada and the United States.
