Canada will limit tariff-free imports of cheap foreign steel to assist local producers struggling with the sanctions from the US, Prime Minister Mark Carney has declared.
Speaking at a news conference in Ontario, Carney also vowed to diversify its trading partners beyond the US and make the use of Canadian steel a priority. The news follows punitive tariffs from President Donald Trump – initially a 25% duty on Canadian steel in March, subsequently doubling to 50% in June.
On Tuesday, the prime minister hinted that US tariffs could still exist even after a bilateral deal. Addressing journalists on Wednesday, Prime Minister Carney added that imports represented close to two-thirds of Canadian steel consumption at present, and more than 90% of Canadian steel exports went to the US – a degree of reliance he termed “unsustainable”.
Under the new steps, the government will tighten its tariff rate quotas to 50% from 100% of 2024 steel import volumes from non-free trade agreement countries, including Canada. Imports above that quota will be subjected to a 50% tariff.
Carney also pointed a finger at China in his announcement, stating there would be a further tariff on steel imports from non-US nations “containing steel melted and poured in China”. He said that there won’t be any modifications to the products excluded under the Canada-US-Mexico free trade agreement (Cusma).
The prime minister also promised to modify the federal government’s policy to mandate contractors to use Canadian steel. He further stated that Canada’s “big projects” – including the effort to construct more housing and to enhance the defence sector – will be utilising Canadian steel.
These reforms will see Canadians “giving ourselves far more than any foreign government can take away,” he added. Steel and aluminium production in Canada are two of the most severely impacted by Donald Trump’s sector-specific tariffs.
Catherine Cobden, president and CEO of the Canadian Steel Producers Association, informed CBC News that steel production had dropped by 30% since Trump introduced his metal tariff in March. This is something we should have been doing all along, but it’s wonderful to see we are making progress,” Cobden said of Carney’s announcement.
