Prime Minister Mark Carney has unveiled a series of initiatives to support Canada’s steel and lumber industries, which have been adversely affected by U.S. tariffs. These measures include financial aid and bolstering the domestic market against foreign competition.
In a statement from Carney’s office, it was revealed that the Canadian government intends to restrict the influx of foreign steel from nations with and without trade agreements. For countries lacking such agreements, Canada will reduce tariff rate quotas for steel products from 50% to 20% of 2024 levels, limiting the amount of imported steel subject to lower duties.
During a press briefing, Carney highlighted that these actions could create over $850 million in additional demand for Canadian steel. The government will also decrease quotas for steel products from countries with trade pacts (excluding the U.S. and Mexico) from 100% to 75% of 2024 levels. This approach aims to facilitate a gradual transition for Canadian companies away from foreign steel while ensuring some supply continuity.
Moreover, the federal government will terminate the temporary tariff remission on steel imports for manufacturing, food and beverage packaging, and agricultural production by January 31, 2026. Catherine Cobden, CEO of the Canadian Steel Producers Association, expressed optimism about these measures, emphasizing the potential for the industry to regain lost ground.
Additionally, to aid lumber industries grappling with challenges like the 45% U.S. tariffs, Canada will allocate $500 million through the large enterprise tariff loan facility. The government will also inject $500 million into the Business Development Bank of Canada’s softwood lumber guarantee program, streamlining application processes for support programs.
Furthermore, the federal government is urging railway companies to slash freight rates by 50% for transporting Canadian steel and lumber interprovincially, starting in the upcoming spring. This initiative will involve allocating funds to Canadian National Railway and Canadian Pacific Kansas City, with an estimated cost of approximately $146 million annually.
Derek Nighbor, CEO of the Forest Products Association of Canada, commended the government’s actions and emphasized the importance of efficient program implementation. Notably, the steel and aluminum sectors have been grappling with trade tensions following the imposition of tariffs by the U.S., heightening the need for such supportive measures. Despite recent discord in trade talks with the U.S., Carney remains focused on addressing the challenges faced by Canadian industries.