China Warns Canada Over Steel Tariffs, Threatens Retaliation

Beijing has issued a sharp rebuke to Canada over new steel import restrictions, urging Ottawa to revoke its recently implemented tariff measures. The Chinese commerce ministry labeled the curbs as discriminatory and vowed to take necessary steps to protect the rights of Chinese enterprises. The tensions follow Canada's introduction of a tariff rate quota system and additional levies on steel imports made with metal sourced from China, further straining already fragile bilateral trade ties.

China Denounces Canadian Steel Measures As Unjustified

In a statement released on Friday, China’s commerce ministry condemned Canada’s new tariff policies targeting steel products that contain Chinese-melted and poured metal. The measures, part of a broader effort by Canada to shield its domestic steel industry, apply to all countries except the United States and introduce quotas on partners with free trade agreements.

China argued the move undermines fair competition and contravenes principles of non-discrimination in trade. “We urge the Canadian side to correct its wrong practice immediately,” the ministry stated, adding that countermeasures would be enacted to defend the “legitimate rights and interests” of Chinese firms operating globally.

Diplomatic And Trade Fallout Looms

The dispute is the latest flare-up in China-Canada relations, which have seen repeated tensions over trade policy and geopolitical alignments. Beijing’s warning suggests it may impose retaliatory tariffs or restrictions in return, although no specific measures were announced.

The situation also places Canada in a difficult balancing act between supporting its domestic steel sector and avoiding escalation with one of the world’s largest exporters. With China accounting for a significant share of global steel production, any countermeasures could have ripple effects across supply chains, especially in construction and manufacturing.

Observers now await whether China will escalate the matter through formal channels at the World Trade Organization or pursue bilateral pressure tactics.