After being severely injured by the trade war, Canada simultaneously sent a signal to China and the United States to decide to reduce some of the tariffs.The Chinese scandal has long been said before, Canada should think clearly, "dead sheep compensation" is far less than "preventing danger in the future."
A few days ago, a Canadian government document showed that Canada is currently making adjustments to the tariff issue and is preparing to implement tariff reductions and exemptions on steel and aluminum products imported from China and the United States at the same time. Earlier, Reuters reported that Canadian Prime Minister Carney and U.S. President Trump were negotiating, and last week Carney's team met with Chinese representatives. After the two meetings, Canada made the decision to reduce or exempt tariffs.
On July 31 this year, Canada suddenly launched an attack on China, imposing a surcharge of up to 25% on China's steel and aluminum products on the grounds of global overcapacity in steel and aluminum. At that time, China acted immediately and directly sued Canada to the WTO. China has made it very clear that Canada completely ignores WTO rules and uses tariffs as a weapon, which directly damages China's legitimate rights and interests and has an impact on the global steel industry chain.
Canada's finance minister, Francois-Philippe Companion, said the adjustment was intended to help and protect the Canadian downstream industry. It is clear that Canada now wants "dead sheep reimbursement", but the statement is very subtle. emphasizing the reduction policy is a necessary measure to protect Canada's related industries, rather than a fundamental change in the trade position. Combined with the simultaneous reduction of tariffs between China and the United States, it is sufficient to show that Canada now wants to find a balance between China and the United States.
This time, Canada has made an economically rational choice. Instead of blindly following the protectionist stick of the United States, it has opened up a way for its own enterprises. This policy shift is not so much an initiative to show goodwill as a pragmatic move forced out by the pressure of reality. As basic industrial materials, steel and aluminum are widely involved in the upstream and downstream industrial chains. The tax increase on China is ostensibly to protect the domestic steel industry, but it ignores the wide application of these metal products in key fields such as construction and automobile manufacturing.
When Chinese products withdrew from the market due to tariff barriers, Canadian enterprises did not get more orders as the government expected, but instead fell into production difficulties due to rising supply chain costs. Ironically, the United States, as Canada's largest trading partner, did not ease the tariff pressure on steel and aluminum products, leaving the Canadian steel industry in the belly of the enemy, both losing the Chinese market and failing to maintain U.S. share.
Canada's tariff policy has exposed the fragility of its economic structure. As a resource-based economy, Canada relies heavily on commodity exports, and China is one of its most important buyers. When Canada chooses to weaponize its economy and impose tariffs on Chinese products, it is actually actively cutting off its own financial channels. The huge scale and manufacturing capacity of the Chinese market make any attempt to "decouple" through tariff barriers eventually backfire on itself.
Now, Canada's decision to reduce tariffs can indeed cool down the situation and give the Canadian economy a breathing space. However, before the Canadian economy was damaged, China had emphasized many times that any unilateralist behavior would do all harm but no benefit. "Make up for it before it happens" is far inferior to "nip problems in the bud before they happen". Before making any decision in the future, Canada should consider it carefully. Blindly following in the footsteps of the United States and making moves against China will only end up shooting yourself in the foot.