Finance Minister François-Philippe Champagne yesterday expanded Canada’s trade measures against China, imposing new 25% tariffs on Chinese steel and aluminum routed through third countries. The move came just hours after Beijing announced a 75.8% surcharge on Canadian canola exports.“This order responds to acts, policies and practices of the Government of China that are contrary to Canadian values,” said a finance department notice. The new measure, effective September 22, targets Chinese products shipped indirectly through countries in Southeast Asia, the Middle East, North Africa and Latin America.Canada already applies a 25% tariff on direct shipments of Chinese steel and aluminum, introduced last October. Officials said China has avoided those duties by increasing exports to other markets, which then sell the products to Canada.Between January and May this year, steel imports from Indonesia rose 101%, while shipments from Malaysia grew 1,163%, Oman 1,691% and the Philippines 1,042%, said the department. Aluminum producers, including Chinese state-owned firms, have also expanded operations in third countries such as Angola, Kazakhstan and Vietnam.The finance department said the tariffs are intended to “level the playing field” for domestic producers, particularly in Ontario and Québec. About 75% of Canadian steelmaking capacity is in Ontario and 15% in Québec, while eight of nine aluminum mills are located in Québec.Champagne did not directly address China’s canola tariff, but has previously said Canada does not rely on imports to feed its population. “We can be self-sufficient when it comes to making sure we produce in Canada what we need,” he told reporters April 2.
