It's not just the US that is locked in an escalating trade war with China: according to Bloomberg, Canada is also preparing steel quotas and tariffs targeting Beijing meant to prevent dumping of steel imports from global producers seeking to avoid U.S. tariffs.
Implicitly confirming that Trump was right to launch protectionist measures against China, and that others would have done it if they had the stomach to disturb the global trade order, the Canadian measures are said to be "a combination of quotas and tariffs aimed at certain countries including China" and follow similar “safeguard” measures being considered by the European Union aimed at warding off steel that might otherwise have been sent to the U.S. It comes alongside Canadian counter-tariffs on U.S. steel, aluminum and other products set to kick in on July 1.
As Bloomberg further adds, the Canadian measures are expected to include new quotas on certain steel imports to prevent dumping, with tariffs applied above that threshold.
The announcement could come as early as next week, though the government hasn’t finalized its plans, the people said. A spokesman for Finance Minister Bill Morneau declined to comment. Representatives for Foreign Minister Chrystia Freeland, who handles U.S. trade issues, didn’t immediately return requests for comment.
The USDCAD spiked higher on the headline rising to 1.3312 amid concerns that a new front in the global trade war is opening.
Meanwhile, as some points out, on Wednesday BOC Governor Poloz will speak in an anticipated speech which may give markets guidance on whether a July hike is still live, and in light of the recent soggy economic data, the BOC may put any tightening on hold for the foreseeable future.