In a significant move to bolster the domestic steel sector, Prime Minister Mark Carney unveiled a suite of new federal measures on Wednesday, including stricter foreign steel import restrictions and policies designed to reduce the cost of shipping steel across Canada.
New Import Quotas and Tariffs
The federal government is implementing a two-tiered system for steel imports. For countries without a free-trade agreement with Canada, a 50 per cent tariff will now apply once their imports exceed 20 per cent of the volume they shipped to Canada in 2024. This marks a significant tightening from the previous policy announced in July, which allowed a 50 per cent threshold.
Similarly, for nations that have a free-trade pact with Canada—excluding the United States and Mexico—the 50 per cent tariff will be triggered once their imports surpass 75 per cent of their 2024 shipment volumes, down from the previous 100 per cent allowance.
Closing Loopholes and Enhancing Enforcement
A separate new policy introduces a 25 per cent tariff on steel-derivative products, such as wind towers, prefabricated buildings, fasteners, and wires. This measure directly addresses complaints from the industry that the initial quotas were too narrow, allowing overseas producers to bypass duties by shipping slightly fabricated or modified steel.
To ensure these new rules are strictly followed, the government is establishing a dedicated steel compliance team within the Canada Border Services Agency.
Support for a Vital Industry
Prime Minister Carney, flanked by cabinet ministers and ArcelorMittal Dofasco CEO Ron Bedard, framed the announcements as crucial support for the steel and lumber industries, which have been severely impacted by the ongoing trade war with the United States. Fifty per cent U.S. tariffs continue to make Canadian steel less competitive, forcing producers to focus on increasing sales within Canada.
Carney stated that Canada is one of the countries most exposed to the fundamental restructuring of the global steel industry, noting the nation's high per-capita steel use and its historical openness to foreign imports to meet domestic demand.
The new policies are part of a broader package intended to help these foundational sectors navigate a challenging international trade landscape and reinforce their role in the Canadian economy.
