Donald Trump’s 25 per cent steel tariffs, combined with a weak Canadian dollar, is posing a problem for domestic steel.
“These discussions wouldn’t be happening – at least in the same way – but for the fact that we have a 25 per cent tariffs on imports of Canadian steel product into the United States,” Saskatchewan’s Trade and Export Development Minister Jeremy Harrison said.
“We have seen a significant increase in steel being imported into the province and I mean that is dumping of steel products produced elsewhere and that is causing significant concern for Evraz and significant problems for the company,” he continued.
The Canadian Border Security Agency (CBSA) is investigating the amount steel from the People’s Republic of China, the Socialist Republic of Vietnam, and the Republic of Korea being dumped into the Canadian market at a cost lower than what domestic producers can provide.
“We’ve seen, basically, an 80 per cent increase over the course of the last two years of tubular steel products, which is clearly a reflection of the fact that we’re having steel products dumped into the Canadian market. We know it’s occurring, Evraz obviously knows it’s occurring and we’re confident the government of Canada will be making the same determination,” Harrison said.
The CBSA are expected to announce their preliminary findings Monday, however the Canadian International Trade Tribunal has already said it found “reasonable indication that dumping and subsidizing of some steel products by several Asian countries have harmed or could harm Canadian steel producers.”
According to Harrison the findings are far from shocking; they were inevitable.
“This was predictable. The fact that we have no U.S. market, and still though have no tariffs walls or barriers to steel imports from outside of Canada – I mean, I don’t think a surprise that would we see an import of steel being diverted into the Canadian market,” he stated.
Consultations are ongoing with the provinces and industry to determine what safeguards can be implemented to protect Canadian producers.
“We would expect the government of Canada to act to protect our domestic producers to ensure that those jobs are protected and that we’re not being put into an anti-competitive position due to trade measures taken in another country,” Harrison said.
Harrison says the provincial government has been in near daily communication with the Prime Minister’s Office, and with Chrystia Freeland, the national trade minister. Despite concerted efforts from all parties to resolve the NAFTA issue, Harrison is worried about what he sees as a larger trend.
“We’ve seen a troubling trend with regard to market access into a number of jurisdictions, whether that be Saudi Arabia, Italy, the continued discussions – and lack of a deal – with regard to NAFTA. So we’ve been concerned, but we’ve been offering our support and help on whatever we can.”
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