'This is the epitome of unfair,' said one Canadian steel producer
A tentative deal being negotiated in Washington, D.C., proposes that Canadian steel mills will face tariffs and quotas on their exports to the United States, but U.S. steel producers won’t face any such barriers in Canada, according to sources who were briefed on the matter.
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The proposed deal will allow Canadian companies to export four million tonnes of steel to the U.S. per year at a 25 per cent tariff rate, but any steel in excess of that volume will face a 50 per cent levy, say sources who were granted anonymity because of the sensitivity of the matter.
It’s part of a broader trade package being negotiated between the U.S. and Canada after U.S. President Donald Trump threatened to invoke new 50 per cent tariffs on approximately $20-billion worth of Canadian products, including hockey sticks, dairy products and many other items.
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Those tariffs, under Section 338 of the Tariff Act of 1930, were scheduled to take effect on Wednesday, but have been postponed until 12:01 a.m. Saturday pending negotiations.
A spokesperson for the Prime Minister’s Office said the negotiating team is still in Washington, D.C., and continues to work on the deal.
“As collaborative efforts with the United States towards a finalized agreement remain ongoing, we will not comment further,” the spokesperson said.
