Canada announces new support for lumber, steel industries hit by tariffs

As well as boosting protections for steel and lumber workers, Canada will offer more assistance in helping the steel and lumber industries deal with American tariffs and establish a domestic market.

In a press conference on Wednesday, Prime Minister Mark Carney gave an overview of the new strategy.

According to Carney, Ottawa will reduce the quota for steel imports from nations without a free trade agreement to 20% from the level of 50 percent in 2024.

Countries that have signed a free trade agreement (FTA) with Canada will see their quotas reduced from 100% to 75% in 2024. The US and Mexico, who are bound by the US-Canada-Mexico free trade agreement, are not included in this.

Additionally, Canada will implement border controls to combat steel dumping and impose a global 25% tariff on targeted imported steel-derivative products.

In a bid to stop the importation of foreign steel into Canada, Ottawa established a quota for steel imports in July at 50% of the 2024 level.

According to a government official, the regulations are being made to make it easier for Canadian-produced steel to enter the country.

More than 23 000 people directly work in the steel industry, which contributes more than 4 billion dollars ($2.8 billion) to the country’s gross domestic product (GDP). However, one of the two industries that has been hardest hit by US President Donald Trump’s 50% tariffs on Canadian steel imports is in it.

After the Trump administration’s hike last month, Trump has increased steel tariffs by 50%, and softwood lumber, which has long been subject to US tariffs, is currently taxed at 45 percent.

Carney claimed that the decades-long effort to establish a more stable economic relationship between Canada and the US is now over.

As a result, many of our weaknesses have developed. More than 75% of our exports were made in the United States last year. All of our exports of lumber and steel are bound for a single market, according to Carney, 90 percent of which are exported in aluminum and 90 percent of the world.

Beginning in the first half of 2026, Ottawa will work with railroad companies to reduce the cost of moving Canadian steel and lumber across provinces.

By lowering freight costs, “we will make it more affordable to transport Canadian steel and lumber across the country,” said Carney.

The government announced that it would support local steel and lumber use in home construction, as well as financial aid for businesses that are dealing with labor shortages, a shortage of money, and restructuring operations.

Trump tensions

After the Ontario provincial government ran television advertisements in US markets praising Trump’s tariffs and citing a speech by former US President Ronald Reagan, Trump abruptly ended trade talks with Canada last month.

Carney stated that he would attend the FIFA World Cup 2026 tournament’s final draw on December 5 in Washington. He claimed he had spoken with Trump at that time and that he had only spoken with the president briefly on Tuesday.

When the United States wants to re-engage in those discussions, Carney said, “We are ready to re-engage.”

Carney’s announcement comes as US businesses are under more pressure as a result of Trump’s tariffs.