Trump urges Canada to tighten controls on Chinese steel and aluminum amid broader trade tensions
The United States is pressing Canada to adopt stricter safeguards against transshipment of Chinese steel and aluminum, while Canada expands its trade relationship with China, creating friction in bilateral trade talks.
Washington has asked Ottawa to strengthen measures that prevent Chinese steel, aluminum and other products from entering the U.S. market through transshipment, a practice where goods are routed through an intermediary country before reaching their final destination. U.S. officials warn that processing such materials in Canada or Mexico could allow them to qualify as regional content and avoid existing tariffs.
The two countries previously addressed the issue in a 2019 joint statement that sought to block foreign-made steel and aluminum from being transshipped between the United States and Canada. U.S. trade officials now argue that Canada should adopt tougher safeguards as part of a broader effort to limit China’s role in critical manufacturing supply chains.
Canada says it already limits certain steel imports from nations without free-trade agreements, including China, and applies a 50% surcharge when those limits are exceeded. At the same time, Ottawa has moved to deepen economic ties with Beijing. In March, China reopened its market to several Canadian farm and seafood products, and Canada set a quota of 49,000 Chinese electric vehicles at the most-favored-nation tariff rate, removing a prior 100% surtax. The country also extended tariff relief for some Chinese steel and aluminum items it deems in short supply, citing a strategy to diversify its trade relationships. China remains Canada’s second-largest merchandise trading partner.
U.S. officials view these steps as contradictory to the Trump administration’s goal of creating a more China-resistant North American trading bloc, raising concerns about whether Canada will align with that approach.