Canada's steel producers are delivering an urgent message to British Columbia's construction sector: the rules have changed dramatically due to escalating U.S. trade tensions, and domestic steel is now readily available for the province's major infrastructure projects.
U.S. Tariffs Reshape Canadian Steel Landscape
According to Catherine Cobden, president of the Canadian Steel Producers Association, tariffs in the U.S. trade war have skyrocketed from 25 percent to 50 percent over the past ten months, causing Canadian steel exports across the border to collapse. The industry has lost approximately three million tonnes per year of its U.S. export market, with exports continuing to decline under the aggressive American tariff regime.
"Old assumptions don't apply," Cobden stated in an interview. "We have a lot of steel and we are very competitive on fairly traded prices."
Canada typically produces about 12 million tonnes of steel annually, with half traditionally exported to the United States. That export pipeline has now been severely constricted, creating significant domestic capacity that industry executives argue can replace up to 80 percent of the country's steel imports.
Impossible Export Alternatives
Finding new international markets for this surplus steel presents nearly insurmountable challenges. Cobden explained that global markets are flooded with approximately 600 million tonnes of excess steel production annually, making export diversification practically impossible in the current climate.
This week, Cobden led a delegation of steel industry executives to Victoria to lobby for provincial support measures. They're making the case that backing Canadian steel makes economic sense for an industry they describe as having "strategic value to the Canadian economy."
Federal 'Buy Canadian' Policy Gains Momentum
The steel industry's plea aligns with Prime Minister Mark Carney's emerging "Buy Canadian" policy, which prioritizes Canadian-made materials in government projects. Carney first introduced the concept in September, with additional details emerging in November's federal budget.
According to online documents, the Prime Minister aims to implement the policy by spring 2026, favoring Canadian-produced steel, aluminum, and lumber—or materials from "trusted partners" allowing equal market access—on approximately $70 billion worth of federal projects.
Carney has stated he wants to make government "our own best customer" through these procurement changes. The policy would extend to "nation building" industrial projects being fast-tracked through the newly created Major Projects Office, with four such projects already located in B.C.
These procurement measures complement tariff actions Carney introduced in July, which restricted tariff-free steel imports from countries other than the U.S., while American products now face a 25 percent tariff.
The combined effect of these policies and the U.S. trade war has created what industry leaders call a transformative moment for Canadian steel—one where domestic capacity can finally meet local demand if procurement practices adapt accordingly.
