A staffer works in a steel company that makes high-end automotive spring steel in Ma'anshan, East China's Anhui Province on June 24, 2025. Chinese companies are advancing their efforts in new quality productive forces, a new development paradigm, to improve total factor productivity. Photo: VCG

 
Canadian Prime Minister Mark Carney announced on Wednesday local time an additional 25 percent tariff on steel products imported from China as part of his latest measures to "stabilize the domestic steel market and prevent harmful trade diversion." Chinese experts slammed the move as a "blatant violation" of WTO rules and a misguided attempt to blindly follow the US' unilateralist trade policies.

Canada will implement additional tariffs of 25 percent on steel imports from all non-US countries containing steel melted and poured in China before the end of July, according to an official news release on the PM's official website.
 
Moreover, Canada will also tighten the tariff rate quota (TRQ) levels for imported steel products from non-FTA countries rolled out in June from 100 percent to 50 percent of 2024 volumes. Above those levels, a 50 percent tariff will apply.
 
Last month, the Canadian government announced the implementation of TRQ on imported steel products, per a government's official news release published in June 19, which means that countries that do not have an FTA with Canada, including China, would be subject to 50 percent tariffs if their steel shipments to Canada exceed 2024 levels.

However, Canadian steel officials complained that this would not be enough to protect the domestic industry from what they feared would be a surge of foreign steel, according to a New York Times report, which cited these concerns as a reason for Carney's decision to "ratchet up the pressure" on Wednesday.
 
The Canadian government said in June's statement that it will adjust its existing counter-tariffs on steel and aluminum products on July 21 to levels consistent with progress that has been made in the broader trading arrangement with the US. 

US President Donald Trump introduced 25 percent tariffs on all imports of steel and aluminum on March 12, and doubled the levies to 50 percent in early June, a move that has set off turmoil in markets around the world, including in Canada, where steel is an important industry.
 
Cui Fan, a professor at the School of International Trade and Economics, University of International Business and Economics, described Canada's move targeting China as a "blatant violation" of WTO rules, calling it one of the most negative examples of how the unilateral trade practices launched by the US are now spilling over to other countries.

"This poses a serious threat to the multilateral trading system. If more countries follow suit, it could severely undermine the WTO framework and place the global economy in a highly precarious position," he warned.

Cui also criticized Canada's policy as "clearly discriminatory," as its announcement presumes Chinese threats without substantive evidence while singling out Chinese steel products for tariff hikes—a clear breach of the WTO's principle of non-discrimination.

In fact, China's steel exports have minimal actual impact on Canada's domestic industry, representing only a negligible share of total imports, Zhao Xingshu, deputy director of the department of Canadian studies, Institute of American Studies at the Chinese Academy of Social Sciences, told the Global Times on Thursday.

Industry Canada data shows more than $16 billion in steel imports in 2024, almost half of which is from the US, and about 10 percent from China. Canada exported more than $12 billion in steel — 91 percent to the US and 4 percent to Mexico, according to a Canadian Press report.

Cui emphasized that while Canada's new tariffs and TRQ restrictions may create short-term trade barriers and boost domestic steel and aluminum production, this will come at a significant cost - raising costs across downstream industries and ultimately undermining the country's overall economic competitiveness.

'Wrong practice' against China

Since last year, Canada has imposed a series of tariffs and trade restrictions on China. Canada hiked tariffs in October 2024 on electric vehicles (EVs) and steel and aluminum products imported from China, prompting the Chinese side to initiate an anti-discrimination probe in September, according to Xinhua News Agency.
 
In March, China announced additional tariffs on imported rapeseed oil, oil cakes, and peas originating from Canada, as well as aquatic products and pork, based on the ruling of an anti-discrimination probe.

In a recent move that has sparked tensions, the Canadian government ordered Chinese surveillance camera maker Hikvision to cease operations in the country over so-called national security concerns, a decision that China has condemned as a "wrong practice" that disrupts normal economic and trade cooperation between the two countries.

Zhao highlighted that Canada's latest tariff policy reflects a consistent approach toward China that dates back to the Trudeau administration, which also struggled to avoid pressure from the US.

The share of China-Canada trade in each country's total trade volume is relatively small, she noted. "However, given Canada's much smaller economy compared to China's, any disruption in bilateral trade would likely cause greater harm to Canadian industries and its economy," according to Zhao.

Cui pointed to China's open and rational attitude to bilateral economic and trade ties, which stands in contrast with Canada's unilateral actions.

Chinese Ambassador to Canada Wang Di said in June, during an interview with Canadian media, that the China-Canada relationship is fundamentally mutually beneficial, and pragmatic bilateral cooperation not only supports both nation's economic development but also contributes to greater global stability and certainty.
 
Heightened trade strains

Tensions over tariff issues between the US and Canada have been escalating in recent weeks, as the two sides have yet to reach a workable trade agreement.

"The trade actions of the United States are further transforming global steel market dynamics and supply chains," Carney told reporters on Wednesday, according to the New York Times report. "Canada will be one of the countries most impacted by these developments."

US President Donald Trump said last week that the US will impose a 35 percent tariff on imports from Canada from the beginning of August. In response, Carney said in a social media post that "throughout the current trade negotiations with the United States, the Canadian government has steadfastly defended our workers and businesses."
 
Recent trade tensions between the US and Canada have grown more complicated, with difficult negotiations over issues such as softwood lumber, dairy, digital services taxes, and auto parts, Zhao said, adding that the way these disputes play out could also indirectly influence Canada's policy stance toward China.

However, she called on Canadian policymakers to recognize the strong economic complementarity between China and Canada. "For instance, Canada's abundant natural resources (energy and minerals) perfectly align with China's massive demand as a leading energy importer, presenting vast potential for bilateral cooperation," Zhao said.