Canadian Government Announces New Measures To “Protect And Transform” Domestic Steel Industry

On Nov. 26, Canadian Prime Minister Mark Carney announced several new initiatives to “protect and transform” the country’s steel industry. Treasury Board of Canada President Shafqat Ali reiterated the measures at a stop in Ontario last Friday, Dec. 5.

Under the plan, the Carney government will:

• Further limit foreign steel imports to ensure that Canadian steel producers have better access to the domestic market;
• Tighten the tariff rate quota levels for steel products from non-free trade agreement (FTA) partners from 50 percent to 20 percent of 2024 levels;
• For trading partners other than the United States and Mexico with which Canada has an FTA, reduce tariff rate quota levels for steel products from 100 percent to 75 percent of 2024 levels;
• Impose a global 25 percent tariff on targeted imported steel-derivative products such as wind towers, prefabricated buildings, fasteners, and wires;
• Toughen border measures to combat foreign steel dumping and verify compliance with applicable surtaxes, including by equipping the Canada Border Services Agency with a dedicated steel compliance team, enhanced detection of false declarations, and an expanded online reporting tool; and
• End the temporary remission of Canadian tariffs on imports on January 31, 2026 for steel used in Canada for manufacturing, food and beverage packaging, and agricultural production.

To make it easier to build with Canadian steel, the government said it will work with railway companies to cut freight rates for transporting Canadian steel interprovincially by 50 percent beginning in Spring 2026. Prime Minister Carney also said he will:

• Increase protections for Canadian steel workers and businesses so they can adapt and thrive in a new global landscape;
• Earmark more than $100 million over two years to provide support to eligible employers in all sectors with an active work-sharing agreement and who commit to supporting training for employees working reduced hours. This measure, he said, “will increase the income replacement for eligible workers, helping up to 26,000 Canadian workers in various sectors, including steel.”

Read more analysis from Bloomberg.