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Prime Minister Carney announces new measures to protect and strengthen Canada's steel industry

Wednesday, July 16, 2025 9:20 AM PDT

HAMILTON, ON, July 16, 2025 /CNW/ - Canada is one of the countries most exposed to the fundamental restructuring of the global steel industry, with substantial steel exports, high per capita use, and a disproportionately open import market. To remain competitive and grow our economy, Canada must reinforce our strength at home. Our objective is to stabilize the domestic steel market and prevent harmful trade diversion amid current tensions in global steel trade.

Today, the Prime Minister, Mark Carney, announced a suite of targeted measures to stand behind Canada's steel industry, protect Canadian careers, and invest in our homegrown industrial capacity to build Canada strong. Canada's new government will:

1. Restrict and reduce foreign steel imports entering the Canadian market

As stated on June 19, 2025, Canada's new government promised to review our tariff rate quotas for non-free trade agreement (FTA) partners in 30 days. To that end, the following changes to tariff rate quotas will take effect in the coming days.
First, Canada will tighten the tariff rate quota levels for steel products from non-FTA countries from 100% to 50% of 2024 volumes. Above those levels, a 50% tariff will apply.
Second, for non-U.S. partners with which we have an FTA, Canada will introduce a tariff rate quota level for steel products at 100% of 2024 volumes and apply a 50% tariff on steel imports above those levels.
Existing arrangements with our CUSMA partners will remain the same, including no changes to our current trade measures with the U.S.
The government is reviewing its remission framework to favour the use of Canadian steel and aluminum in Canadian-made products. Canada will reassess its existing trade arrangements with respect to steel, consistent with progress made in the bilateral discussions with the U.S. and taking into account broader steel negotiations.
Canada will also implement additional tariffs of 25% on steel imports from all non-U.S. countries containing steel melted and poured in China before the end of July.
These measures will ensure Canadian steel producers are more competitive by protecting them against trade diversion resulting from a fast-changing global environment for steel, creating more resilient supply chains, and unlocking new private capital in Canadian production.

2. Invest in Canadian steel workers and production

Building on the enhancements to Employment Insurance (EI) and the EI Work-sharing, the government is investing $70 million in Labour Market Development Agreements to provide training and income supports for up to 10,000 affected steel workers. Through reskilling investments and increased worker supports, we will ensure workers have the skills and support they need to meet the future needs of the industry.
To strengthen and ready the workforce to build a more resilient steel industry, Canada will provide $1 billion to the Strategic Innovation Fund to help steel companies advance projects that will increase their competitiveness within the domestic market, catalyze production of steel products not currently produced in Canada, and create jobs in sectors such as defence.
The Business Development Bank of Canada Pivot to Grow initiative is being enhanced to provide support to eligible steel small and medium-sized enterprises facing liquidity challenges.
The steel industry will be prioritized with $150 million as part of the government's Regional Tariff Response Initiative through the Regional Development Agencies.
Finally, the Large Enterprise Tariff Loan will be updated to expand eligibility and provide lower cost financing to firms in the steel industry. These changes will include reducing the minimum annual revenue requirement from $300 million to $150 million, reducing the minimum loan size from $60 million to $30 million, extending the loan maturity from 5 to 7 years, reducing the initial interest rate, and requiring companies to prioritize worker retention.

3. Prioritize Canadian steel to build big projects

As the federal government delivers on its mandate to build major, national projects and millions more homes faster, we will ensure Canadian steel and other Canadian materials are prioritized in construction. We will also change federal procurement processes to require companies contracting with the federal government to source steel from Canadian companies.

At this transformative moment, we are shifting from reliance to resilience – using Canadian steel to protect our sovereignty, grow our industries, export our energy, and build one strong Canadian economy. It's time to build big, build bold, and build the strongest economy in the G7 using Canadian steel.

Quotes"Our steel industry will be central to Canada's competitiveness, our security, and our prosperity. As Canada moves from reliance to resilience, Canada's new government is taking a series of major measures to support, reinforce, and transform the industry to be more resilient in the face of profound shifts in global trade and supply chains."— The Rt. Hon. Mark Carney, Prime Minister of Canada

"Our government continues to defend Canadian workers, businesses, and investments as we navigate the new trading environment. At the same time, we are actively strengthening our domestic producers through the significant additional supports announced today, enabling them to build essential infrastructure and ensure the prosperity of workers throughout this key Canadian industry."— The Hon. François-Philippe Champagne, Minister of Finance and National Revenue

"Protecting Canada's steel industry means defending Canadian jobs, securing our economic sovereignty, and building the future right here at home. Canada's steelworkers are critical to building a strong Canadian economy; protecting their jobs is protecting Canada's economic future."— The Hon. Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions

"Steel workers and their industry are vital to Canada's economy. Canada will support workers as their jobs are threatened by tariffs. Today's announcement will help workers access skills training and retraining tailored to the needs of the steel sector. As we build the strongest country in the G7, the message to Canadian steel workers is clear: we are with you."— The Hon. Patty Hajdu, Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario

"Canada is building faster and stronger. By prioritizing Canadian steel and other materials in our projects, we are taking important steps to prioritize Canadian suppliers, protect well-paying jobs, strengthen our supply chain, and support our industry in the face of unjustified U.S. tariffs."— The Hon. Joël Lightbound, Minister of Government Transformation, Public Works and Procurement

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