Canada announces measures to protect and boost Canada’s steel industry

Prime Minister Mark Carney announced a wide-ranging plan to shield Canada’s steel industry from foreign competition, support workers and prioritize domestic steel in major infrastructure projects.

The federal government will impose stricter import controls and new tariffs on foreign steel, invest billions in industry support and mandate the use of Canadian steel in federal construction projects.

“Our steel industry will be central to Canada’s competitiveness, our security, and our prosperity,” said Carney. “As Canada moves from reliance to resilience, Canada’s new government is taking a series of major measures to support, reinforce and transform the industry to be more resilient in the face of profound shifts in global trade and supply chains.”

Key trade measures include reducing tariff rate quotas for non-free trade agreement (FTA) countries to 50 per cent of 2024 volumes, with a 50 per cent tariff on imports above that threshold. For non-U.S. FTA partners, a 100 per cent quota level will apply, with the same overage tariff. A 25 per cent tariff will also be applied by the end of July on imports containing steel melted and poured in China.

The government will maintain current trade arrangements under CUSMA with the United States.

On the domestic front, the federal government is investing $70 million in training and income supports for up to 10,000 affected steel workers, and will inject $1 billion into the Strategic Innovation Fund to help steel producers increase competitiveness and boost domestic production.

Small and medium-sized steel enterprises will receive enhanced support through the Business Development Bank of Canada, while $150 million will be allocated through Regional Development Agencies under the Regional Tariff Response Initiative.

The Large Enterprise Tariff Loan program will also be expanded to offer more accessible financing, lower interest rates and longer loan terms, with a focus on retaining workers.

To further reinforce domestic demand, Ottawa will require Canadian steel in federal procurement processes for major construction projects and housing initiatives.

“At this transformative moment, we are shifting from reliance to resilience – using Canadian steel to protect our sovereignty, grow our industries, export our energy and build one strong Canadian economy,” said Carney.