OTTAWA – The federal government of Canada is set to unveil measures aimed at supporting the struggling steel industry, which has been adversely affected by substantial tariffs imposed by the United States. Prime Minister Mark Carney is scheduled to make an announcement detailing these initiatives on Wednesday at 3:15 p.m. ET.
An unnamed government official, not authorized to speak publicly ahead of the official announcement, disclosed plans that include substantial reductions in foreign steel imports. Specifically, the government intends to decrease imports from nations with which Canada does not have free trade agreements from 50 percent to 20 percent of levels established in 2024. This strategic move is designed to empower Canadian steel producers to capture a larger share of the domestic market, potentially generating an additional $854 million in demand.
In July, Prime Minister Carney had previously established a quota that limited imports from non-free trade agreement countries to 50 percent of 2024 levels. Additionally, a 50 percent tariff was imposed on imports exceeding this quota. The upcoming measures may further limit imports from countries with free trade agreements, although the specific reductions in these areas remain unclear. In the previous announcements, a 50 percent tariff was similarly applied to imports from those countries—barring the U.S.—for any steel brought in beyond the established 2024 import levels.
To further bolster the steel industry, the Canadian government is also planning to collaborate with CN Rail to reduce interprovincial freight rates by 50 percent for the transportation of steel. If CN Rail is unable to meet these lower freight rates, the government has indicated it will subsidize the difference, providing crucial financial relief to steel producers.
There is uncertainty regarding whether these measures and subsidies will extend to steel being transported to Northern regions of Canada. Construction materials destined for Nunavut communities, for instance, are typically transported via sealift vessels during open-water periods, while other regions such as the Northwest Territories (N.W.T.) and Yukon rely on trucking for deliveries.
These developments come in response to the ongoing challenges faced by the Canadian steel industry, particularly since U.S. President Donald Trump implemented a staggering 50 percent tariff on Canadian steel imports back in June. The economic friction escalated further when trade talks between Canada and the U.S. were halted last month, amid tensions stemming from an Ontario government advertising campaign that referenced remarks made by former U.S. President Ronald Reagan in 1987, highlighting the negative implications of tariffs.
During a session in the House of Commons on Tuesday, Carney assured legislators that he would offer support for the steel, automotive, and lumber sectors within the week, all while fielding questions from Conservative Party representatives about his lack of communication with President Trump. Furthermore, the government official indicated that Carney would also announce measures to support the softwood lumber industry during the Wednesday announcement.
This report sheds light on the proactive steps being taken by the Canadian government to stabilize and strengthen its domestic steel industry in the face of international trade pressures and tariffs. The initiatives highlight a commitment to fostering local industry and ensuring that Canadian producers can remain competitive in a challenging market environment.
