Prime Minister Mark Carney announced that Canada will restrict imports of cheap foreign steel without tariffs to help domestic manufacturers exempt them from taxes collected by the United States.
Speaking at a press conference in Ontario, Carney also promised to move his trading partners away from the U.S. trading partners and prioritize the use of Canadian steel.
The news comes after President Donald Trump imposed a punitive tariff on Canadian steel at 25% and later doubled it to 50% in June.
On Tuesday, the Prime Minister proposed that U.S. tariffs may still be positioned even after a bilateral agreement.
Prime Minister Carney noted in a conversation with reporters on Wednesday that imports currently account for nearly two-thirds of Canada’s steel consumption, while more than 90% of Canadian steel exports are destined to be the United States – he has been described as “unsustainable” levels.
Under the new measures, the government will collect its tariff rate quota – from 100 to 50% of steel imports from countries without a free trade agreement with Canada.
Any imports exceeding this limit will face a 50% tariff.
Carney also targeted China in the announcement, saying that steel imported from non-U.S. countries “melt and poured into China” would impose additional levies on steel imports.
He added that under the Canada-US-Mexico Free Trade Agreement (Cusma), no exemptions will be made to the product.
The Prime Minister also promised to change federal government policies, requiring contractors to use Canadian steel.
He added that Canadian “large-scale projects” (such as efforts to build more housing and strengthen the defense sector) will use Canadian steel.
He said the changes will ensure that Canadians “give themselves far more than anything foreign governments can take away”.
Canada’s steel and aluminum industry is one of the biggest hits on tariffs in specific sectors by Donald Trump.
Catherine Cobden, president and CEO of the Canadian Steel Producers Association, told CBC News that steel production has dropped 30% since Trump first imposed metal tariffs in March.
“This is something we should have been doing all the time, but it’s great to see that we are making progress,” Cobden refers to Carney’s announcement.
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A wellness enthusiast and certified nutrition advisor, Meera covers everything from healthy living tips to medical breakthroughs. Her articles aim to inform and inspire readers to live better every day.
