Canada will impose tariffs on Chinese steel products starting from August 1st
On July 16th, the website of the Canadian Department of Finance issued an announcement stating that in response to the US steel tariffs and global steel overcapacity, starting from August 1st, it will expand the scope of application of import steel tariff quotas, tighten existing quotas, and impose additional taxes on imports beyond the quotas. In addition, a 25% additional tax will be imposed on products containing steel melted and cast in China that are imported from countries other than the United States.
Canada will review the tariff quotas for non-FTA partners within 30 days, with plans to tighten the import volume to 50% by 2024. Steel products exceeding this quota will be subject to a 50% tariff. For trade partners outside the United States that have signed FTAs, the steel import quotas will be implemented as of 2024, and imported products exceeding the quotas will also be subject to a 50% tariff.
The uniform taxation of products with "melting and casting originating in China" demonstrates the tightening of control over the traceability of the industrial chain. Even for galvanized sheets produced by Korean steel mills using Chinese steel billets, as long as the melting and casting process can be traced back to China, the same tax rate applies.
If the pipeline contains steel smelted in China: basic tariff + 25% additional tax (e.g., original tariff 5% → new tax rate 30%); for excess imports: additional 50% additional tax.
Example: For a pipeline with a cargo value of $1 million, if it exceeds the quota and contains Chinese steel, the total tariff may exceed $450,000