Prime Minister Mark Carney has pledged to intensify efforts to restrict the influx of low-cost foreign steel into the Canadian market by the end of this month. This move comes in response to the adverse impact of U.S. President Donald Trump’s tariffs on the domestic steel industry. Carney made the announcement in Hamilton, providing a sense of relief to an industry already grappling with layoffs and reduced production levels following the imposition of steep import taxes by the U.S.
In a bid to address concerns raised by Canadian steelmakers regarding foreign companies dumping steel at unfairly low prices in the Canadian market, the government had previously introduced adjustments to the tariff quota system in June. These changes aimed to limit steel imports from countries without free trade agreements to levels observed in 2024. However, industry stakeholders criticized these quotas as still being excessively high.
Under the new measures outlined by Carney, steel imports from non-free trade agreement partners, such as China and Turkey, will face stricter tariff rate quotas set at 50% of 2024 volumes. Any imports exceeding these levels will be subject to a 50% tariff. Additionally, Ottawa is tightening regulations on steel imports from countries with free trade agreements other than the U.S. and Mexico, imposing a 50% tariff on volumes surpassing 2024 levels.
Carney also announced the implementation of additional tariffs of 25% on imports from all non-U.S. countries containing steel melted and poured in China. He emphasized the importance of ensuring Canadian steel producers secure a larger market share within Canada.
The Canadian Steel Producers Association expressed satisfaction with the new measures, with President and CEO Catherine Cobden noting that the caps on steel imports would aid Canadian steelmakers in reclaiming the domestic market. Despite the challenges posed by the U.S. tariffs on Canadian steel and aluminum sectors, industry representatives remain cautious about the future impact on production levels.
Michael Garcia, CEO of Algoma Steel, considered the changes as a positive step forward. He highlighted that the adjustments to the tariff rate quota would help curtail the offloading of steel by foreign countries. However, the effectiveness of these measures in mitigating the industry’s losses will largely depend on the forthcoming terms of the August 1 deal between Canada and the U.S.
Carney’s recent statements follow his earlier suggestion that Canadians may need to accept some tariffs from the U.S. if negotiations do not yield favorable outcomes. While the opposition views the tariff quota adjustments as a positive development, they remain firm in their stance against a deal that includes tariffs. Bloc Québécois Leader Yves-François Blanchet criticized Carney for perceived concessions and urged for minimal tariffs and comprehensive negotiations across all sectors.
Furthermore, Carney unveiled plans for additional investments in Canadian steel companies, including funding for training and income support for affected steelworkers and financial assistance through the Strategic Innovation Fund. The government aims to prioritize the use of Canadian steel in national projects, bolstering the steel industry’s role in building critical infrastructure and enhancing security and defense capabilities. Carney also emphasized forthcoming changes to the procurement process to mandate the sourcing of Canadian steel for government contracts.
