Prime Minister Mark Carney announced this week some additional measures to protect the Canadian steel industry, reinforcing the current measures.
The Canadian government will further limit foreign steel imports to ensure that Canadian steel producers have better access to the domestic market.
Canada will tighten the tariff rate quota levels for steel products from non-free trade agreement (FTA) partners from 50% to 20% of 2024 levels.
For non-CUSMA partners with which Canada has an FTA, Canada will reduce tariff rate quota levels for steel products from 100% to 75% of 2024 levels.
Canada will impose a global 25% tariff on targeted imported steel-derivative products such as wind towers, prefabricated buildings, fasteners, and wires.
Canada will also toughen border measures to combat foreign steel dumping and verify compliance with applicable surtaxes. To do so, it will equip the Canada Border Services Agency with a dedicated steel compliance team, enhanced detection of false declarations, and an expanded online reporting tool.
To move away from relying on imported steel and to give Canadian companies time to adjust their supply chains to use Canadian steel, the temporary remission of Canadian tariffs on imports will end on January 31, 2026, for steel used in Canada for manufacturing, food and beverage packaging, and agricultural production.
These measures are expected boost the competitiveness of Canadian steel producers by protecting them against trade diversion. They should also unlock over $1 billion in new domestic demand for Canadian steel.
Link: New measures to protect and transform Canada’s steel and lumber industries