Canada tightens steel import rules, prioritizes Canadian-made steel for domestic projects
OTTAWA — Canada will restrict foreign steel imports coming into the country, a move meant to cut Canada’s dependency on imported steel amid ongoing trade turbulence. Speaking at a Hamilton steel plant on Wednesday, Prime Minister Mark Carney announced the new measures — meant to stabilize the Canadian steel market amid uncertainty sparked by U.S. President Donald Trump’s ongoing trade war. “Steel is the very foundation of Canada, we will need much more of it to launch the projects of national interest that will unfold in the following decades,” Carney said late Wednesday morning. “Steel will also be essential to our energy infrastructure projects, to our ports, our new rail and trades corridor, to defence and to our artificial intelligence data centres.” The global steel industry has seen a fundamental shift over the past years, Carney said — driven largely by unfair foreign competition. “The trade actions of the United States are further transforming global steel market dynamics and supply chains,” Carney said. “Let’s be clear — Canada will be one of the countries most impacted by these developments, because we are highly exposed to this fundamental restructuring that’s happening in the global steel industry. We have substantial steel exports, we have very high per capita steel use, and we have a disproportionately open import market.” Canada’s imports nearly two-thirds of the steel it uses, Carney added — compared to the United States, which imports only a third of its steel. Foreign steel from non-free trade partners will see tariff quota rates tightened to 50% above 2024 volumes, with a 50% tariff applied to imports above those limits. For steel from non-U.S. partners with existing trade agreements, Canada will impose a tariff rate quota of 100% of 2024 trade volumes, with a 50% tariff on incoming steel exceeding those levels. Steel imports from all non-U.S. countries containing steel melted in China will see an additional 25% tariff. Existing agreements within the Canada-United States-Mexico Agreement (CUSMA) will remain the same. Canada is also reviewing existing policies to favour the use of Canadian steel and aluminum in Canadian-made products and government infrastructure projects. To help those affected, Canada will also spend $70 million in Labour Market Development Agreements to offer training and income supports for steel workers impacted by the trade uncertainty. As well, Canada will provide $1 billion to the Strategic Innovation Fund to fund investments by Canadian steel producers to increase their domestic competitiveness and begin production of steel products not currently produced in Canada. As well, the Large Enterprise Tariff Loan program will be expanded, allowing steel firms to have greater access to government support for the industry — changes that will reduce minimum annual revenue requirements to access the program.
