World Trade War: Canada Prepares Steel Quotas, Tariffs On China To Prevent Dumping

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.

Comments

macholatte Looney Tue, 06/26/2018 - 12:33 Permalink

Seems to me that the Progs should be happier than a dog rolling in the grass. The “tarifffs” equate to higher prices created by increased taxes and increasing taxes and suffocating the economy is what the Progs love to do.  How could they spend all that new money, spend it on more tax payer funded political organizations to help brain wash the Sheeple, more tax payer funded college courses promoting identity politics and white self hate, subsidize the MSM, import the human debris from south of the border and provide them with free shit?

But wait...... higher cost of imported goods means that the means of production might remain local and cause a manufacturing renaissance and eventually drive prices down as more people get jobs and become self sufficient and prosper and, and, .....
OH, Fuck Trump!
    Resist!
        Resist!

Bra ha ha ha.
Has Trump turned the Progs on their heads by being the ultimate radical?
 

"Radicals must be resilient, adaptable to shifting political circumstances, and sensitive enough to the process of action and reaction to avoid being trapped by their own tactics and forced to travel a road not of their choosing."
- Alynski
                                               

In reply to by Looney

skbull44 macholatte Tue, 06/26/2018 - 12:40 Permalink

Despite the political theatre of a Canada vs. US spat, you can pretty well expect Canada to walk the US line on most things. Canada is a vassal state of the US Empire (and was a vassal of the British Empire before that). Its central bank has ZERO gold reserves; in fact, almost all of its reserves are in US fiat dollars. Where the US goes, Canada tends to follow...with usually a time lag of a few months/years. Its main contributions to the world are natural resources and hockey players...and the odd comedian.

 

Https://olduvai.ca

In reply to by macholatte

38BWD22 COSMOS Tue, 06/26/2018 - 13:24 Permalink

 

If we in America wise-up, COSMOS mi amigo, then sooner or later Canada and the USA will be #Great friends again.

I do not see the Chinese taking over Canada.  Too many of "us" vs. them.

At some point, the "the Saxon will hate" if they push too hard.....

+ 1 even though I have been very well treated in Canada all the times I visited.  Lose not ye hope that good will prevail.

In reply to by COSMOS

FringeImaginigs skbull44 Tue, 06/26/2018 - 14:04 Permalink

Oh no no no... Canada isn't always a follower.  We have kept the housing bubble going for much longer than you ever did in the USA. We have been able to get household debt perGDP perPerson perAnything to an astronomical level - way beyond what you were able to achieve in the USA.  And we have a CentralBanker that is even more absurd than your last three; he still thinks everything is just peachykeen and talks in hushed tones. And our PrimeTeenager knows how to do selfies by the thousands!  So there!

In reply to by skbull44

TrustbutVerify skbull44 Tue, 06/26/2018 - 14:15 Permalink

I disagree that Canada is a vassal state of the "US Empire."  There is no "US Empire."  But there is is a group of countries that generally understand workable economics.  They coordinate in this regard.  In the past I've called it the "culture of success."  Japan, an absolute wreck after WWII, adopted this culture of success and within a few decades became a world economic power.  

All countries have tensions between them.  Its is expected that the leader of one country might bark back at comments public comments that are not flattering to another.  In this most recent occurrence Canada has enjoyed a trade advantage with the US for a long while, as so many countries have.  Of course, they don't want to give it up.  The question is, are the do the arguments have merit and will each party participate in negotiation.  Trudeau and perhaps Canadians recognize the merit of Trumps position.  So, in response as various trade arrangements have to change, Canada considers tariffs itself against the King of the World trade manipulator - China.  

Its not the end of the world.  Its just necessary changes that have to occur from time to time - especially after decades non-action.  Part of the waste is both countries have paid trade representatives grossly excessive salaries and benefits all this time to "kick the can" to the point where tensions elevate even this benign but noticeable level.  

In reply to by skbull44

Endgame Napoleon Looney Tue, 06/26/2018 - 14:07 Permalink

Steel workers can support their households on the wages alone, with no need for unearned income from big government.

Steel workers pay a lot into the SS retirement fund, unlike illegal aliens working under the table while collecting about 5 streams of monthly welfare for womb & sperm productivity, in addition to refundable child tax credits that, at the maximum of $6,431, equal 3 to 4 months of full-time wages for many non-welfare-eligible US citizens, working in the low-paying service sector. 

Unless everthing durable is made with plastic in the future, the capacity to make your own steel is kind of a national security issue, as Trump points out.    

China wants all of the world’s steel jobs, no surprise, since those jobs are quality jobs, unlike the 78 million gig jobs that people in the USA are working, while 101 million US citizens of working age are out of the workforce, and 42 million EBT-qualified citizens & noncitizens are so underemployed in womb-productive households, staying below the income limits for welfare, that they cannot cover groceries on their pay.

Trump is right to stand up for the few good-paying American jobs, making clear that we are “not going to pretend that stupid trade is free trade.”

As for any plants coming here to the USA, we do not need new immigrants to work in those plants. The only way a plant is an advantage to the underemployed USA is if most of the jobs go to US citizens.

When US-owned companies move plants to China or Mexico, China & Mexico do not let in a bunch American citizens to take the jobs in those plants.  If they did, the pink-slipped Carrier workers could go to Mexico to regain their jobs. 

Still, it is good when Trump stands up for American workers. No one else will do it. 

In reply to by Looney

Scipio Africanuz jm Tue, 06/26/2018 - 12:53 Permalink

That's very very good news! Now, it's China's turn to reciprocate the gesture, in fact, all countries should tariff each other, until sense prevails, and they ALL cooperate to establish a just, and fair system of relating. Let this wicked system of things come crashing down!

Iniustitia Delenda Est!...

In reply to by jm

Rothbardian in… Tue, 06/26/2018 - 12:31 Permalink

So weird...where have I seen this before?  Oh that's right....Smoot-Hawley.

 

And then the Europeans get involved.  Then the rest of Asia doubles down.  And so on and so on.  Then in a look of dismay the population will wonder why global GDP is lower and they have fewer choices for more expensive goods and people are losing their jobs.

 

I mean it's crazy right?  And to think we've run this play before and surprisingly it didn't score a touchdown then either.

jm Rothbardian in… Tue, 06/26/2018 - 12:41 Permalink

China has been dumping their steel, pretty well documented from financials, below the cost of production in Canada and Mexico.  Because of NAFTA, they sell it in the US duty free.

You can't let a government subsidize a business to run losses because, intended or not, it drives other companies out of business. What's the damage? Now, nothing. Somebody gets something cheap, but in the long-run the survivors can charge monopolistic prices.  This is basic commercial code written from history's lessons.

In reply to by Rothbardian in…

Rothbardian in… jm Tue, 06/26/2018 - 12:50 Permalink

To you and the fella above you...I agree wholeheartedly.  Government subsidy of business (particularly to drive out competition) is a REAL problem.  In fact it is THE problem.  When we allow government to embrace fascism and begin to pick winners and losers in the marketplace WE, the consumers, start to lose economic power.  Compounding it now, and probably logically concluding, is that now in that battle that has left us is that the instruments have moved from subsidies to tariffs.  In this case it is YOU who becomes the casualties in a war that you didn't start and that if it is won by your side you don't benefit from.  

 

That is and has been the point all along.  Tariffs are no more a solution than a subsidy was.  They are two ends of the same horse.  To look at the government structure, which clearly doesn't like/respect you (see NSA article) as a savior to your needs when THEY actually created the crisis is the same failed logic that has enabled tyrants to rule over us for a thousand years.

In reply to by jm