• Canada to implement tariffs to protect the domestic steel industry from U.S. trade measures.
• A 50% tariff will apply to imports exceeding 2024 volumes from certain trade partners.
• The Canadian government will prioritize domestic steel in procurement and invest C$1 billion in steel projects.
• Additional tariffs of 25% will target steel imports containing material from China.
• Domestic industry leaders argue these measures are overdue but welcome progress.

In an effort to shield domestic manufacturers from the adverse effects of U.S. tariffs, Canadian Prime Minister Mark Carney announced the introduction of new tariff measures impacting steel imports. At a news conference in Toronto, Carney outlined a tariff rate quota specifically for countries with which Canada has free trade agreements, excluding the U.S., to mitigate trade diversions that have threatened competitiveness within the Canadian steel sector, according to BBC, Al Jazeera, and Reuters.

According to Carney, a 50% tariff will be imposed on imports that exceed the designated volumes for 2024 from relevant countries, with existing arrangements under the United States-Mexico-Canada Agreement (USMCA) respected. This initiative comes in response to significant increases in import duties by U.S. President Donald Trump, who recently raised tariffs on steel and aluminum imports to 50%, impacting Canada, the leading supplier of steel to the U.S., as reported by BBC, Al Jazeera, and Reuters.

Furthermore, in an effort to combat the influx of foreign steel, a 25% additional tariff will be imposed on steel imports that contain material melted and poured in China, set to be enacted by the end of July. Carney emphasized that these measures aim to render Canadian steel producers more competitive amidst a rapidly evolving global trading environment, which has adjusted under U.S. tariffs, according to BBC, Al Jazeera, and Reuters.

Carney also announced that the Canadian government intends to prioritize domestic steel in public procurement and has established a C$1 billion fund intended to bolster project financing for the steel industry, particularly relating to defense initiatives. Catherine Cobden, CEO of the Canadian Steel Producers Association, welcomed the announcements but noted that action had been needed sooner to alleviate the current pressures faced by the industry, reflecting concerns echoed across the sector, according to BBC, Al Jazeera, and Reuters.