Canada Unveils New Support Package for Lumber and Steel Industries Hit Hard by US Tariffs
In an effort to mitigate the economic impact of tariffs imposed by the United States on steel and lumber imports, Canada's Prime Minister Mark Carney has announced a new plan aimed at protecting domestic industries. The measures, unveiled during a news conference, include reduced quotas for steel imports from countries without a free trade agreement with Canada.
Effective immediately, Ottawa will cap steel imports from non-FTA countries at 20% of the 2024 level, down from the current 50%. Conversely, countries with a reciprocal FTA deal will see their quotas reduced to 75%, excluding the United States and Mexico which are bound by the US-Canada-Mexico trade agreement.
In addition, Canada has decided to impose a global 25% tariff on targeted imported steel derivative products. Furthermore, the government plans to implement border measures to combat steel dumping, thereby opening up domestic markets for Canadian-produced steel.
Industry experts have welcomed the move as necessary to counteract the detrimental effects of US tariffs on the steel sector alone. With an estimated $4 billion contribution to Canada's GDP and employing over 23,000 people directly, the industry remains one of the country’s most affected by the current trade tensions.
Critics, however, remain divided on whether the measures are sufficient or represent a further escalation in protectionist measures between Ottawa and Washington. The complex interplay of trade agreements and tariffs poses significant challenges for businesses operating across the border.
As US President Donald Trump continues to press Canada on what he perceives as unfair practices, tensions surrounding trade negotiations have continued to escalate. Despite recent efforts at dialogue with Carney, no official end date has been set for talks between Ottawa and Washington.
With freight rates expected to decrease by 50% for domestic steel and lumber transfers starting early in 2026, the new support package represents a step towards mitigating the impact of tariffs on these critical industries.
In an effort to mitigate the economic impact of tariffs imposed by the United States on steel and lumber imports, Canada's Prime Minister Mark Carney has announced a new plan aimed at protecting domestic industries. The measures, unveiled during a news conference, include reduced quotas for steel imports from countries without a free trade agreement with Canada.
Effective immediately, Ottawa will cap steel imports from non-FTA countries at 20% of the 2024 level, down from the current 50%. Conversely, countries with a reciprocal FTA deal will see their quotas reduced to 75%, excluding the United States and Mexico which are bound by the US-Canada-Mexico trade agreement.
In addition, Canada has decided to impose a global 25% tariff on targeted imported steel derivative products. Furthermore, the government plans to implement border measures to combat steel dumping, thereby opening up domestic markets for Canadian-produced steel.
Industry experts have welcomed the move as necessary to counteract the detrimental effects of US tariffs on the steel sector alone. With an estimated $4 billion contribution to Canada's GDP and employing over 23,000 people directly, the industry remains one of the country’s most affected by the current trade tensions.
Critics, however, remain divided on whether the measures are sufficient or represent a further escalation in protectionist measures between Ottawa and Washington. The complex interplay of trade agreements and tariffs poses significant challenges for businesses operating across the border.
As US President Donald Trump continues to press Canada on what he perceives as unfair practices, tensions surrounding trade negotiations have continued to escalate. Despite recent efforts at dialogue with Carney, no official end date has been set for talks between Ottawa and Washington.
With freight rates expected to decrease by 50% for domestic steel and lumber transfers starting early in 2026, the new support package represents a step towards mitigating the impact of tariffs on these critical industries.
its like they're trying to take a hit from the usa and then try to make it up with some kinda protectionist nonsense 
anyway, $4 billion is a lot of cash for 23k people tho 
gotta wonder if this is all just a big game of chicken between carney and trump 
...so Canada's gonna cap imports from non-FTA countries and impose tariffs on certain steel products...but what about all the smaller businesses that might get hurt in the process? Like, can't we just try to work out a solution that benefits everyone? And another thing, why do they gotta make it a 50% cut in freight rates by 2026? That's just gonna be a bunch of uncertainty for the industry 
what if they just talked to the US instead of doing all these restrictions? 
anyway, it sounds like freight rates are gonna go down in 2026 so that's a good thing 
hopefully it'll be less chaos soon 
THEY'RE ALREADY STRUGGLING WITH THE US TARIFS AND NOW IT SEEMS LIKE CANADA'S TRYING TO PROTECT THEM 
BUT AT THE SAME TIME, SOME PEOPLE ARE SAYING THAT IT MIGHT BE TOO LATE FOR THOSE INDUSTRIES BECAUSE OF THE DAMAGE ALREADY DONE 
I GUESS ONLY TIME WILL TELL IF THIS SUPPORT PACKAGE IS ENOUGH TO HELP THEM RECOVER 
. Like, those steel imports from non-FTA countries are already being dumped to the lowest bidder, and now they're capping them off at 20%. That's just gonna push the prices up for Canadian consumers, fam 
I'm not sure if this move is gonna be enough to save Canada's lumber industry... $4 billion might sound like a lot but it's also only half the GDP that US tariffs took from them last year 
. Anyone got any sources on how many jobs are actually gonna be created by this new support package? 
also, don't get me wrong, but 20% is still pretty high for imports... might just push them overseas instead of supporting domestic industries 
I mean, we're already losing so much money because of those stupid US tariffs, and now we're supposed to help each other out by limiting imports from non-FTA countries? It's like a game of protectionist whack-a-mole... 
. I mean, they're taking action to protect their own industries and people who work in them. It's like, if you're a Canadian steelworker, you deserve to keep your job and earn a living without some US politician telling you what to do.
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I'm loving this move by Canada's PM! 
It's about time they took action to protect their homegrown industries from unfair US tariffs 
. $4 billion is a big deal for GDP, and those 23k jobs are no joke 
!
! Maybe this whole thing won't be so bad after all 