Canada Unveils Major Plan to Protect and Revitalize Steel Industry

On July 16, 2025, Prime Minister Mark Carney announced a comprehensive strategy to safeguard and strengthen Canada’s steel sector amid global market instability. The new measures aim to limit foreign steel imports, invest in domestic production, and prioritize Canadian steel for major infrastructure projects.

Key actions include:

• Trade Measures:

  • Tariff rate quotas for non-FTA countries will be cut to 50% of 2024 levels, with a 50% tariff on volumes above that.

  • For non-U.S. FTA partners, a new 100% quota of 2024 levels will apply, with tariffs beyond that.

  • A 25% tariff will be added to all steel imports (excluding U.S.) containing steel melted and poured in China.

  • Canada will revise its remission framework to encourage the use of domestic steel.

    
    

• Worker and Industry Support:

  • $70 million will support retraining and income aid for up to 10,000 steel workers.

  • $1 billion will go to the Strategic Innovation Fund to support competitiveness and job creation.

  • Financial support programs will expand for SMEs and large firms in the steel industry.

    
    

• Federal Procurement Prioritization:

  • Canadian steel will be prioritized for national infrastructure and housing projects.

  • Federal contractors will be required to source steel domestically.

The plan emphasizes shifting from dependency to resilience, aiming to bolster Canadian sovereignty, industrial strength, and economic leadership.