China Criticizes Canadian Steel Import Tariffs Amid Growing Trade Tensions

China Condemns Canada’s Steel Tariff Measures

China has strongly criticized Canada’s latest steel import restrictions, accusing Ottawa of violating World Trade Organization (WTO) rules. The Chinese Embassy in Ottawa stated that these measures disrupt fair trade and lack any legal foundation. Their remarks follow recent diplomatic efforts by both countries to mend strained relations after a sharp decline in bilateral cooperation.

According to the embassy, Canada’s steel tariffs are unjustified and risk damaging long-standing economic ties. China was Canada’s second-largest trading partner in 2023, with trade exceeding CA$120 billion. However, relations have cooled due to a series of political and trade disputes. The embassy warned that these tariffs would harm normal commercial exchanges and could trigger retaliatory actions.

On July 18, China’s Ministry of Commerce urged Canada to reverse its “incorrect practice” of restricting steel imports. It emphasized that China would take all necessary steps to defend the interests of its domestic steel industry. The statement signals potential escalation if Canada does not adjust its trade stance.

Canadian Steel Industry Backs New Tariff Rules

While China voices strong opposition, Canada’s domestic steel sector supports the new trade protections. The Canadian Steel Producers Association (CSPA) welcomed the government’s effort to prioritize locally made steel in public projects. It also endorsed expanded support for the industry as global competition intensifies.

In response to U.S. steel tariffs, Canada is tightening its tariff quota system. A 25% tariff will soon apply to steel imports from countries—excluding the U.S.—that use Chinese-origin smelted and rolled steel. This new policy will take effect by the end of July and aims to protect Canada’s metallurgical sector from low-cost, state-backed exports.

Despite diplomatic gestures to improve bilateral ties in June, this steel dispute reveals the fragility of Canada-China trade relations. Both sides appear committed to defending their national interests, even at the expense of broader cooperation.

SuperMetalPrice Commentary:

China’s backlash against Canadian steel tariffs reflects deeper geopolitical and economic divisions between two major trading powers. With Canada aligning more closely with U.S. trade policies, and China defending its industrial exports, metals markets can expect continued volatility. This situation also underscores the strategic significance of domestic production policies in managing global steel supply chains. Market participants should prepare for shifting trade routes, possible retaliatory measures, and tighter compliance demands in cross-border metal transactions.