Image: ln24SA
Prime Minister Mark Carney announced on Wednesday that Canada will introduce a tariff rate quota on steel imports from countries with which it has free trade agreements—excluding the United States—as part of a broader effort to support the local steel industry.
Under the new policy, a 50% tariff will apply to imports exceeding 2024 volume levels from these trade partners. However, existing agreements with the United States and Mexico under their trilateral trade pact will remain unaffected.
Additionally, Canada plans to apply a 25% tariff on steel imports originating from any country if the steel was initially melted and poured in China. These measures will take effect by the end of July.
Carney said the move is a response to concerns from Canadian steel producers, who have argued that international steel—diverted to Canada due to tariffs imposed elsewhere—is undercutting domestic operations and threatening competitiveness.
In light of these pressures, domestic producers had urged the government to strengthen anti-dumping rules. The announcement follows a recent decision by U.S. President Donald Trump to double tariffs on steel and aluminium imports, raising them from 25% to 50%. Canada remains the largest exporter of steel to the United States.
Carney also introduced a C$1 billion support fund aimed at helping steel companies invest in strategic sectors, including defence. Furthermore, Canadian steel firms will be given preference in government procurement contracts.
“These actions are designed to enhance the competitiveness of Canadian steelmakers by preventing market disruption caused by global trade shifts,” Carney said.
For countries without free trade agreements, Canada will reduce the duty-free import quota to 50% of 2024 levels. Any imports above that cap will also incur a 50% tariff.
Catherine Cobden, president and CEO of the Canadian Steel Producers Association, expressed cautious optimism, noting that although the measures come late, they are a step in the right direction. “This is something we should have been doing all along, but it’s fantastic to see that we are making progress,” she said in an interview.
Meanwhile, Canadian steel manufacturer Evraz has lodged a formal complaint concerning steel imports—particularly Oil Country Tubular Goods—from Mexico, the Philippines, South Korea, Turkey, and the United States, citing unfair pricing practices.
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