OTTAWA: Canadian Prime Minister Mark Carney is scheduled to announce new measures today to support Canada’s steel industry following the heavy tariffs imposed by U.S. President Donald Trump. The federal government aims to limit foreign steel imports and lower the cost of inter-provincial rail freight. Sources close to the Prime Minister indicate that Carney will unveil new steps to protect Canada’s strategic industries and implement essential changes.
The quota for steel imports from countries with whom Canada does not have a Free Trade Agreement (Non-FTA) will be slashed from 50 per cent to 20 per cent of 2024 levels. This move is expected to help Canadian steel manufacturers fill the domestic market gap and is projected to create an additional demand of approximately $854 million. Plans are also underway to reduce imports from FTA countries The government will collaborate with CN Rail to reduce rail freight charges for inter-provincial steel shipping by 50 per cent. If CN Rail is unable to offer the reduced rate, the government is prepared to provide a subsidy.
The announcement comes after US President Donald Trump imposed a 50 per cent tariff on Canadian steel last June. Trade discussions with Canada were suspended last month, a decision made by Trump following the Ontario government’s campaign advertising against the tariffs in U.S. markets. Prime Minister Carney had previously promised support for the steel, auto, and lumber sectors in the House of Commons this week.
