The Canadian government announced a series of new trade measures to support domestic steel businesses in the face of increasing competitive pressure from abroad.

The Canadian government on November 26 announced a series of new trade measures to ensure domestic steel businesses have better access to the domestic market, in the context of the steel industry being under a lot of pressure from outside.

Under the new rules, which will take effect on December 26, Canada will adjust its tariff quotas from 50% to 20% for imports from countries without free trade agreements with the country and from 100% to 75% for countries with trade agreements. Goods exceeding the quota will be subject to an additional 50% tax.

In addition, Canada will also impose a 25% tariff on all steel derivative products from all countries. The initial list estimated the total value of these items at more than CAD 10 billion (equivalent to USD 7.1 billion).

In addition, the Government of Canada has also introduced a number of other support measures to boost domestic demand, such as applying the "Buy Canada Policy" to federal contracts worth over CAD 25 million to encourage the use of domestic products, or reducing transportation costs by 50% for interprovincial timber shipments from Spring 2026 to support reducing domestic transportation costs.

According to the release, Canadian primary steel producers are struggling with exports down 24% in just the past year and nearly 1,000 workers in the industry have lost their jobs since the US government imposed new tariffs. Exports account for more than half of primary steel producers’ output, with 90% of this going to the US market.

Source: VTV