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As reported by Reuters, Canada announced on Tuesday that they are considering a safeguard measure against US President Trump’s steel and aluminum tariffs.

Key quotes

“Finance Minister Bill Morneau said a 15-day consultation period will be used to look at the harm or threat of harm to seven steel categories, including steel plate, rebar, energy tubular product, hot rolled sheet, pre-painted steel, stainless steel wire and wire rod.

“Our government believes the tariffs levied by the United States represent an exceptional circumstance, and that’s why provisional safeguards are being considered,” Morneau told a news conference at steelmaker ArcelorMittal’s Dofasco plant in Hamilton, Ontario.

“If evidence gathered during our consultations points to harm or threat of harm to Canadian producers, we will apply provisional safeguards in an expeditious manner and refer the issue to the Canadian International Trade Tribunal for inquiry.”

The safeguards, limiting steel supplies, are a blow to Canada’s oil sector, which has struggled to compete on costs and profitability with the United States, said Tom Whalen, chief executive of the Petroleum Services Association of Canada.

Higher costs of steel products, used to drill wells and build derricks and pressure pumps, would add to that competition gap, and Ottawa should compensate companies that are hurt by the safeguards, Whalen said.

The European Union announced its own safeguards in July, a combination of quotas and tariffs on 23 steel product categories.”