Canada intends to extend steel and aluminum tariff measures

Investing.com -- The Canadian government announced on Wednesday its intention to extend key steel and aluminum tariff measures for an additional year to shield domestic industries from global trade distortions. The policy extension aims to counter non-market practices and prevent trade diversion from undermining local producers and workers.

Subject to official approval, the extension will prolong the nation’s steel tariff-rate quotas for non-CUSMA partners until June 27, 2027. Additionally, horizontal tariff relief for eligible U.S. steel and aluminum products will be stretched until June 30, 2027.

Under the extended framework, imports exceeding the established quota thresholds will remain subject to a 50% tariff penalty. However, Ottawa will continue to exempt its continental CUSMA partners, the United States and Mexico, from these specific quota limits.

"Supporting Canada’s steel and aluminum industry means strengthening our regional economies and the future of shared prosperity," said François-Philippe Champagne, Minister of Finance and National Revenue. He noted that the one-year extension provides the clarity businesses need while protecting jobs from global excess capacity.

The trade maneuvers coincide with Canada giving official notice to the U.S. and Mexico that it seeks a formal renewal of the CUSMA free trade agreement ahead of its July 1 review. Canada-U.S. Trade Minister Dominic LeBlanc traveled to Washington on Tuesday to meet U.S. Trade Representative Jamieson Greer alongside Chief Negotiator Janice Charette.

The high-level meeting marks a crucial resumption of direct communications after President Donald Trump abruptly scrapped bilateral trade talks back in October. Meanwhile, Mexico has also called for a swift CUSMA renewal, following two days of formal bilateral discussions held with U.S. officials last week.

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