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Home » Canadian Politics » Progress on Tariffs Stalled by Steel and Aluminum Talks
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Canadian Politics

Progress on Tariffs Stalled by Steel and Aluminum Talks

January 21, 20264 Mins Read
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Progress on Tariffs Stalled by Steel and Aluminum Talks
Minister of Agriculture and Agri-Food Heath MacDonald is shown arriving for a cabinet meeting on Parliament Hill in Ottawa on Oct. 9, 2025. (Sean Kilpatrick/The Canadian Press)
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The federal government still hasn’t managed to remove tariffs on Canadian products like canola permanently, partly due to ongoing discussions with Beijing regarding Chinese steel and aluminum.

Agriculture Minister Heath Mac Donald mentioned in response to a reporter’s question that this is one of the reasons why China has only agreed to lower its tariff on some Canadian agri-goods until the end of this year.

Canada imposes tariffs on Chinese steel and aluminum. From Ottawa’s perspective, the Chinese government engages in unfair trading practices, including extensive subsidies for its metal industries that result in low prices, disrupting global trade.

Mac Donald, back from a recent government visit to China, informed reporters on Tuesday that both Ottawa and Beijing are working on “remissions relative to steel.” The Canadian government provides remissions or relief from tariffs it places on certain Chinese steel and aluminum products that are typically unavailable or scarce in Canada.

Ottawa announced it will extend those remission measures until the end of 2026.

“So we’ve got some work to do on that,” Mac Donald stated.

When asked for more details, he said, “On steel and aluminum, we need to further identify the situation with China and the federal Canadian government to ensure that we’re meeting their demands and they’re meeting our demands.”

Mac Donald’s office sent a follow-up statement highlighting that the main issue wasn’t just about steel and aluminum but also that “there are still a number of issues and concerns on both sides that need to be worked through.”

It did not specify what those other issues are.

‘We were leaning on an open door’: minister

On Friday, the Liberal government reached an agreement with Beijing allowing tens of thousands of Chinese electric vehicles into Canada’s market in exchange for China reducing duties on Canadian canola products.

Prime Minister Mark Carney called it a “preliminary but landmark” agreement. Ottawa anticipates Beijing will drop canola seed duties from 84% down to 15% by March 1. Tariffs on canola meal, lobsters, peas, and crabs will be lifted starting March 1 until the end of this year.

Canola seed is what canola oil is made from while canola meal is a byproduct often used as animal feed.

This agreement indicates that progress made is just a first step with more potential developments ahead.

“We were leaning on an open door,” Mac Donald said during Tuesday’s news conference when discussing trade negotiations with China. “And we’ll keep moving forward.”

“We feel there are more opportunities in China for other products when we talk about energy, minerals, and so forth,” he added.



Prime Minister Mark CarneyPrime Minister Mark Carney, back left, and Chinese Premier Li Qiang, back right look on as Mac Donald front left takes part in a signing ceremony at Great Hall of People in Beijing January 15. (Sean Kilpatrick/The Canadian Press)

Mac Donald mentioned when the Canadian delegation arrived in Beijing last week there was nothing finalized yet.



However when he met Sun Meijun China’s minister of general administration customs she told him “there’s good news about beef.”

No prior notice was given.

“That’s how quickly all this happened,” Mac Donald remarked. “We were there; we were ready; we’ll be prepared in future – getting done deals needed for long-term relationships.”

China places orders for canola beef

Mac Donald also shared news about China’s rapid movement towards importing Canadian canola seed beef.

He noted a Chinese importer ordered sixty thousand tonnes canola seed aware company shipping first load beef next week.

This marks expected time China purchases Canadian seeds beef since imposed measures block such products.

Mac Donald revealed lifting ban imports days after deal struck reduce tariffs food electric vehicles.

China banned imports cattle two thousand twenty-one case bovine spongiform encephalopathy known mad cow disease found farm Alberta.

BSE fatal brain disease cattle atypical strains pose health risks humans.

Tariffs remain pork however negotiation continues noted producing percent pork consumes.

“There still market us,” said minister.

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Agriculture Aluminum Canada Politics Canadian Politics Canadian Politics news Chinese full hampering minister removal steel Talks tariffs
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