By Paul Vieira
OTTAWA--Canada said Wednesday it would extend by a year limits on how much foreign steel and aluminum produced in countries other than the U.S. and Mexico can be imported, a sign of continued domestic-manufacturing struggles due to the trade upheaval launched by President Trump.
Finance Minister François-Philippe Champagne said the import measures would be extended until the end of June 2027, subject to cabinet approval. The extension represents Canada's commitment "to defend steel workers and industry against steel-trade diversion and nonmarket policies and practices that drive global excess capacity," said Champagne. China is the country most associated with manufacturing overcapacity, an issue that Prime Minister Mark Carney said last week that Group of Seven leaders would tackle at their upcoming summit.
The measures were originally introduced to help cushion the blow for domestic steel and aluminum producers, struggling under the weight of 50% tariffs from U.S. and the dumping of the metals from other jurisdictions into the Canadian market. Prior to the Trump administration tariffs, Canada was America's largest foreign supplier of steel and aluminum.
Under the original rules, markets other than the U.S. and Mexico are limited to steel and aluminum exports into Canada totaling half of 2024 volumes. Any shipment beyond that threshold would face a 50% tariff. Limits also apply to non-North American countries that have trade pacts with Canada.
Carney has sought relief from the U.S. on steel, aluminum and automobile tariffs in exchange for concessions aimed to securing the renewal of the U.S.-Mexico-Canada trade treaty, or USMCA. Under USMCA, about 85% of Canadian shipments to the U.S. are exempt from tariffs.
Senior Canadian officials were in Washington this week aiming to revive talks and shift them into a more productive stage after months of little to no progress. U.S. Trade Representative Jamieson Greer has described his dealings with Ottawa as challenging.
Canada's economy is struggling under the weight of tariffs and the investment chill stemming from trade-policy uncertainty. Canada's economic output fell in the first quarter, or the third drop in four quarters, fueling talk that the country is flirting with a recession.
Write to Paul Vieira at paul.vieira@wsj.com
(END) Dow Jones Newswires
06-03-26 1706ET
