this post was submitted on 16 Jul 2025
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[–] BeNotAfraid@lemmy.world 7 points 2 weeks ago (8 children)

Why? Why is Canada engaging in a trade war started by the states, for their own selfish reasons? I swear Trump is just a Psy-op for a much broader plan.

[–] gonzo-rand19@moist.catsweat.com 16 points 2 weeks ago (5 children)

Chinese steel is cheaper than Canadian steel, even in Canada. Since Canadian steel is being targeted by tariffs in America, we need to make sure that as many Canadian companies as possible are using Canadian steel in order to make up for lost revenue on orders that were cancelled or were expected but are now economically impractical.

The practice is called protectionism and is an important tool when two countries have vastly different trade circumstances, such as when one can cheaply manufacture and ship products globally and another cannot. A good external example of this is the protectionism of Ghanaian oranges in order to stimulate the local industry.

[–] cyd@lemmy.world 4 points 2 weeks ago* (last edited 2 weeks ago) (3 children)

Chinese steel is cheaper than Canadian steel... Canadian steel is being targeted by tariffs in America, we need to make sure that as many Canadian companies as possible are using Canadian steel

This makes no logical sense. When Canadian steel are priced out of the US by tariffs, the supply available for domestic use goes up, which would normally cause the price to fall, already automatically reducing the price advantage of Chinese steel.

Basically, this is a convoluted way to keep steel prices high, to the detriment of Canadian manufacturers that use steel.

[–] Jajcus@sh.itjust.works 5 points 2 weeks ago

And how do the USA tariffs lower the costs of producing Canadian steel? If the costs are the same, but the prices drop, then the production becomes less profitable or even at loss. How this would help Canadian industry when the steel production is forced to stop? Other countries have already lost their production capabilities similar way, it is natural that Canada tries to be more careful.

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