Prime Minister Mark Carney has unveiled a series of new initiatives to support Canada’s steel and lumber industries, which have been adversely affected by U.S. tariffs. The measures include financial aid and measures to restrict foreign competition in the Canadian market.
The government is targeting foreign steel imports from countries with and without free trade agreements with Canada. For countries lacking such agreements, the tariff-rate quotas for steel products will be reduced from 50% to 20% of 2024 levels. This move aims to limit the amount of steel that can be imported at lower duty rates.
During a recent news conference, Carney highlighted that these actions could potentially generate over $850 million in domestic demand for Canadian steel. Additionally, for nations with free trade agreements with Canada, excluding the U.S. and Mexico, their quotas for steel products will be reduced from 100% to 75% of 2024 levels.
The government will also terminate the temporary remission of Canadian tariffs on steel used in manufacturing, food and beverage packaging, and agricultural production by January 31, 2026. Catherine Cobden, the president and CEO of the Canadian Steel Producers Association, expressed optimism about the measures, stating that they provide the industry with a competitive edge in the trade conflict with the United States.
Moreover, provinces like British Columbia and New Brunswick have been urging Ottawa for support in the face of U.S. tariffs on softwood lumber. To address this, Canada will allocate $500 million through the large enterprise tariff loan facility to assist lumber companies facing liquidity challenges. An additional $500 million will be allocated to the Business Development Bank of Canada’s softwood lumber guarantee program. The federal government is also encouraging railway companies to reduce freight rates for transporting Canadian steel and lumber interprovincially by 50% starting in the spring, with an estimated cost of $146 million for one year.
The forest products industry has been heavily impacted by trade tensions between Canada and the U.S., with Trump imposing tariffs on Canadian steel and aluminum. Despite recent disagreements and stalled trade talks, Carney remains committed to finding solutions for the ongoing challenges faced by these sectors.