In response to growing global trade tensions and fears of steel market destabilization, Canadian Prime Minister Mark Carney has announced a sweeping package of trade defenses and industrial support aimed at protecting the Canadian steel sector and its workers.
The new strategy, unveiled this week, includes tough import restrictions, significant financial support for steel producers, and reforms to prioritize domestic steel in national infrastructure projects.
Tighter Import Restrictions and Tariff Enforcement
To prevent trade diversion into the Canadian market, the government will:
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Cut tariff rate quota (TRQ) levels for non-FTA countries to 50% of 2024 volumes. Imports above this cap will face a 50% tariff.
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Introduce TRQ caps for FTA partners (excluding the U.S.) at 100% of 2024 volumes, with a 50% tariff on excess imports.
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Impose an additional 25% tariff on steel imports from all non-U.S. countries if the steel is melted and poured in China, effective by the end of July.
“These measures will protect Canadian steelmakers from global oversupply, while ensuring that trade partners adhere to fair practices,” said Carney.
Procurement and Trade Policy Reforms
The government is reviewing its remission framework to encourage the use of Canadian steel in domestic manufacturing. Additionally, Canada will reassess existing trade agreements, particularly in line with ongoing negotiations with the U.S., to strengthen its long-term trade position in steel.
$1 Billion in Investment to Strengthen Steel Ecosystem
As part of the broader strategy, Ottawa will inject major financial support into the sector, including:
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$1 billion through the Strategic Innovation Fund to help steelmakers modernize, expand production, and create jobs.
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$70 million for Labor Market Development Agreements to reskill workers and support steel employment.
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Expansion of the Business Development Bank of Canada’s "Pivot to Grow" initiative, providing liquidity support to steel SMEs facing financial pressures.
“This plan is about resilience, fairness, and long-term strength,” Carney said. “We’re ensuring that Canadian steel remains competitive at home and abroad.”
The announcement positions Canada as a proactive player in managing the global steel crisis, amid rising protectionism and shifting international trade flows.
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