In order to avoid the impact of the US Trump administration's steel import restrictions, the Canadian government is preparing to impose import restrictions on steel from China. Canada plans to impose retaliatory tariffs on US products from July 1st, and import restrictions on products from China will also be implemented simultaneously.
The Canadian government seems to believe that China's steel production may avoid a large amount of low-cost inflows into Canada in order to circumvent the US import restrictions, and the decision will be announced as soon as next week. The European Union (EU) is also said to be discussing the same measures, and the chain reaction of import restrictions will be more severe.
In 2017, Canada’s steel imports were $9 billion. 55% is made in the United States, followed by China, South Korea, Brazil, and Turkey.
According to the report, if Canada imposes import restrictions on steel produced in China, it may lead to an increase in the purchase price of raw materials, which will have a negative impact on the housing market.