Prime Minister Mark Carney has unveiled a comprehensive package of new measures designed to bolster Canada's struggling steel and lumber industries, marking the federal government's latest effort to reduce the Canadian economy's dependence on the American market.
From Reliance to Resilience
Speaking at a news conference in Ottawa on Wednesday, November 26, 2025, Carney emphasized that the Canadian economy is undergoing a fundamental transformation. The Prime Minister declared that the nation must shift "from reliance to resilience" in response to challenging trade conditions with the United States.
Flanked by ArcelorMittal Dofasco CEO Ron Bédard, Carney stressed the ongoing importance of these foundational industries to Canada's economic future. "The Canadian steel and lumber industries will always be at the heart of Canada's competitiveness, our security and our strength," the Prime Minister told reporters.
Three-Pronged Approach to Industry Support
The newly announced policies represent a strategic response to punishing United States tariffs that have targeted Canada and numerous other countries throughout 2025. The measures fall into three distinct categories with specific implementation plans:
Boosting Domestic Steel Demand: The government projects these initiatives will increase demand for Canadian steel by approximately $1 billion through import restrictions.
The key components include:
- Reducing tariff rate quota levels from 50% to 20% for steel products originating from countries without free trade agreements with Canada
- Lowering tariff rate quota levels from 100% to 75% of 2024 levels for steel products from non-CUSMA countries
- Implementing a new 25% tariff on specific imported steel products including wind towers, fasteners, and wires
- Deploying detection technology and specialized steel compliance officers to prevent foreign steel dumping at border crossings
Facilitating Construction with Canadian Steel: Additional measures will streamline building processes to encourage greater use of domestically produced steel in construction projects across the country.
Economic Impact and Trade Tensions
While the broader Canadian economy has demonstrated notable resilience in recent months, specific sectors have suffered significant damage. The targeted industries—steel, auto, aluminum, and lumber—have experienced sharp declines in exports to the United States following the implementation of American tariffs.
Trade negotiations between Canada and the U.S. faced additional complications last month when Ontario aired an anti-tariff advertisement during the Major League Baseball World Series. The commercial, which featured quotes from former U.S. President Ronald Reagan criticizing tariffs, reportedly angered President Donald Trump and led to a pause in discussions.
Carney confirmed that he spoke with President Trump the day before the policy announcement but characterized the conversation as producing "nothing newsworthy." The two leaders are scheduled to meet in person next week at a World Cup draw event.
The federal government's strategy involves both diversifying exports away from the United States and stimulating domestic consumption of Canadian-made products. This dual approach represents a significant shift in Canadian trade policy as the country navigates an increasingly challenging international trade environment.
