Group 1 - Canada announced a 25% tariff on all imported steel containing Chinese smelting and casting components starting at the end of July, which has drawn strong criticism from China [2][3] - The Canadian government reduced steel import quotas from non-free trade partner countries to half of 2024 levels, imposing a 50% tariff on excess imports, affecting not only direct imports from China but also products processed by Chinese enterprises in Canada [3][5] - The Canadian steel industry is heavily reliant on the U.S. market, with 75% of its exports directed there, leading to significant operational challenges for Canadian companies due to U.S. tariffs [2][6] Group 2 - Chinese enterprises are evaluating exit strategies from Canada due to increased operational costs and reduced competitiveness following the new tariffs, with some already packing equipment to relocate [5][8] - The agricultural sector in Canada is facing severe repercussions, with a 40% drop in pea prices and significant inventory issues for canola, as China retaliates against Canadian agricultural exports [5][8] - The Canadian government is under pressure to balance its economic relationship with the U.S. while managing the fallout from its actions against China, which could lead to a deteriorating investment environment [8][9] Group 3 - The U.S. government is supportive of Canada's actions as it aligns with their strategy to contain Chinese steel exports, while Canada faces internal criticism for not directly confronting U.S. tariffs [6][9] - The long-term implications of the tariffs may lead to a cooling of China-Canada relations, with potential negative impacts on Canadian employment and investment [8][9] - The trade dynamics are complicated by the fact that Canadian companies may seek to relocate to other countries like Mexico or Vietnam, which also face U.S. tariff risks, complicating supply chain adjustments [8][9]