Prime Minister Mark Carney has unveiled a set of new initiatives to support Canada’s steel and lumber industries, which have been heavily impacted by U.S. tariffs. The measures include financial aid and stricter regulations on foreign products in the Canadian market.
In a statement from Carney’s office, it was revealed that the government is cracking down on steel imports from nations with and without free trade agreements with Canada. For countries lacking such agreements, Canada is reducing the tariff rate quotas for steel products from 50 percent to 20 percent of 2024 levels.
During a press conference, Carney mentioned that these actions could create over $850 million in domestic demand for Canadian steel. For countries with free trade agreements with Canada (excluding the U.S. and Mexico), their quotas for steel products will be lowered from 100 percent to 75 percent of 2024 levels.
To aid the struggling lumber industry, the federal government is allocating $500 million for lumber firms facing financial challenges through the large enterprise tariff loan facility. Additionally, $500 million will be provided to the Business Development Bank of Canada’s softwood lumber guarantee program, with a streamlined application process for companies seeking support.
Furthermore, the government will urge railway companies to slash freight rates for transporting Canadian steel and lumber within Canada by 50 percent starting in the spring. This initiative will be funded by sending money to Canadian National Railway and Canadian Pacific Kansas City, costing around $146 million for one year.
Catherine Cobden, CEO of the Canadian Steel Producers Association, expressed optimism about the new measures, stating that they give the industry a much-needed boost. Similarly, Derek Nighbor, CEO of the Forest Products Association of Canada, commended the government’s efforts but emphasized the importance of efficient program implementation.
The steel and aluminum sectors have been embroiled in trade tensions between the U.S. and Canada, with President Trump imposing tariffs that have escalated over time. Despite recent disruptions in trade talks, Carney remains committed to addressing the challenges faced by Canadian industries affected by tariffs.