Prime Minister Mark Carney will announce a new support package for Canada’s steel industry.
Moreover, officials say the sector still struggles under the 50% U.S. tariff, which continues to strain companies nationwide.
Sharp Cut to Foreign Steel Imports
The federal plan sharply reduces steel imports from countries without Canadian trade deals.
Therefore, Ottawa will cut the import quota from 50% of 2024 levels to just 20%, opening more space for domestic producers.
Shipping Costs Slashed by 50%
The government will also reduce interprovincial rail shipping costs for steel by half. If rail companies refuse the cut, Ottawa will step in with subsidies to enforce it.
As a result, lower transportation costs will help Canadian steel compete while producers absorb the U.S. tariff shock.
Support Extended to Lumber Sector
The announcement also includes support for the softwood lumber sector, which remains locked in a long dispute with Washington.
Thus, the plan will offer loan guarantees and similar rail-cost reductions. Since the tariff took effect, steelmakers report falling orders, rising costs, and growing uncertainty.
With this package, the government aims to stabilize the sector, protect jobs, and maintain core manufacturing capacity during the trade conflict.
However, economists warn that import limits and subsidies could raise prices for domestic buyers and increase tensions with trading partners.
Carney will release the full plan later this week. After cabinet approval, implementation will begin immediately.
Meanwhile, stakeholders in both steel and lumber industries are watching closely to see whether the measures bring real relief.
