Canada is preparing to introduce tighter controls on imported steel and expand financial assistance for the lumber sector, two major industries currently strained by ongoing U.S. tariffs.
According to early details shared by officials familiar with the plan, the federal government will reduce the tariff-rate quota on steel coming from nations without a formal trade agreement with Canada. The allowable import threshold will drop from 50% to 20% of the previous year’s volume, meaning steel from those countries will face a tariff much sooner once those limits are exceeded.
In addition, the government is expected to add another C$500 million (about $355 million USD) to its loan program aimed at supporting businesses in the softwood lumber industry. This funding is designed to help producers manage the financial pressure created by U.S. trade restrictions. An official announcement is scheduled for November 26 and additional sector-support policies are also anticipated.
The move builds on measures introduced in July, which placed tariffs on steel imports from non-partner countries once they reached 50% of 2024 volumes. That policy triggered criticism from China, which argued the decision would strain economic relations.
Canada’s action comes as domestic steel exporters continue to struggle under the Trump administration’s 50% tariff placed on several foreign steel and aluminum products. The federal and Ontario governments previously stepped in with emergency financial support for Algoma Steel Group Inc., a major steel producer at risk from the tariff impact.
Industry groups have repeatedly urged Ottawa to strengthen protections, warning that overseas steel producers, especially those losing access to the U.S. market could redirect excess supply into Canada and push local manufacturers into further distress.
Canada did respond to the U.S. administration’s initial 25% steel and aluminum tariffs with its own retaliatory 25% duty, but when tariffs doubled to 50%, Prime Minister Mark Carney chose not to match the increase.
The new steel import measures were first reported by the Toronto Star.
Reference Canada to Tighten Steel Rules, Increase Lumber Aid
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