Carney Announces Major Cuts to Steel Imports, Boosts Canadian Industry

URGENT UPDATE: Prime Minister Mark Carney has just announced a significant reduction in imported foreign steel, a move aimed at revitalizing Canada’s struggling steel sector. Effective immediately, Ottawa will slash imports from countries without a free trade agreement with Canada to just 20 percent of last year’s levels, opening up over $850 million in new domestic demand for Canadian steel.

In a bold strategy to protect local industries, Carney revealed that Canada will also reduce tariff-free steel imports from non-CUSMA partners from 100 percent to 75 percent of 2024 levels. Additionally, the government will impose a global 25 percent tariff on targeted imported steel derivative products, including wind towers and prefabricated buildings, in a bid to stimulate demand for Canadian-made steel.

These crucial changes come as the Canadian steel industry faces ongoing challenges following harsh tariffs imposed by U.S. President Donald Trump, who enacted a 50 percent tariff on Canadian steel in June. The steel sector has been under pressure, particularly after the U.S. cut off trade talks last month due to Ontario’s advertisements that highlighted the negative impact of tariffs using remarks from former U.S. President Ronald Reagan.

Earlier this year, in July, Carney had already reduced import quotas from countries lacking free trade agreements to 50 percent of 2024 levels, along with a 50 percent tariff on any imports exceeding the quota. These escalating measures signify the government’s commitment to support Canadian industries amid turbulent trade relations.

This latest announcement marks a critical moment for the Canadian steel and lumber sectors, which have long battled against U.S. tariffs, including a steep 45 percent tax on softwood lumber. The urgency of these developments cannot be overstated, as they are set to reshape the landscape for Canadian manufacturers and workers.

As the situation evolves, industry stakeholders and citizens alike will be closely monitoring these changes. Next steps include potential reactions from U.S. officials and further implications for trade relations between the two countries.

Stay tuned for more updates as this situation develops.