Ottawa unveils steel and aluminum measures to counter U.S. tariffs
Prime Minister Mark Carney on Thursday announced a series of measures to protect the Canadian steel and aluminum industries from the impacts of recently doubled U.S. tariffs, including steep anti-dumping quotas for foreign products that may be diverted to Canada.
Carney said the federal government will also introduce new rules on June 30 to ensure Canadian steel and aluminum and tariff-free products from “reliable trading partners” are prioritized for federal procurement.
As well, the government will ensure the auto industry and other supply chains are given the chance to prioritize domestic materials through remission processes that will be reviewed in the coming days.
“The steel and aluminum workers are on the front lines of this trade crisis,” Carney told reporters.
“In short, the government is responding to the impact of the unjust U.S. tariffs with multiple tools.”
Canada will establish new tariff rate quotas of 100 per cent of 2024 levels on imports of steel products from non-free trade agreement partners, the government said in a news release.
The anti-dumping measures were specifically called for by the steel and aluminum industries. The heads of the Canadian Steel Producers Association and the United Steelworkers visited Parliament Hill on Thursday to call for urgent action by the federal government.
Carney told reporters the measures weren’t done at the request of the U.S. but were “a consequence of the U.S. actions.”
“As you know, the U.S. tariffs on steel and aluminum are global tariffs,” he said.
“They’re not targeted specifically at Canada, but they of course affect our steel industries and our workers. And one of the consequences of that … is that steel from other countries, from third countries, starts to come into Canada if we don’t protect our industries.”
Carney said new tariffs will be imposed in the coming weeks to protect Canadian industries from unfair trading practices and overcapacity.
Carney also announced the creation of two separate task forces for steel and aluminum that will meet to monitor the situation and advise the government.
Industry Minister Melanie Joly told reporters in Ottawa earlier Thursday that she was in contact with CEOs in both sectors Thursday morning and over the weekend.
“We know that the Canadian steel and aluminum workers are very anxious and they want us to come up with a solution really, really quickly,” she said.
Carney added that Canada will “adjust” its existing counter-tariffs on American steel and aluminum on July 21. That date comes shortly after the end of a 30-day window agreed to by Carney and U.S. President Donald Trump at the G7 summit to reach a deal on trade and security.
The tariff levels will be adjusted “to levels consistent with the progress that’s made at that point” in negotiations.
Carney affirmed that Canada is focused on securing a deal that is in its best interest “and only that” when asked if he would accept an agreement that keeps some U.S. tariffs in place.
“There is still some room to travel, so to speak, before we get to that point,” he said, noting the U.S. negotiators “have to fully see” that supporting Canadian workers and industries is in their economic interest.
Canada-U.S. Trade Minister Dominic LeBlanc told reporters he’s in regular contact with key members of the Trump administration, with another meeting set for Friday.
“I’m optimistic over the next three-and-a-half weeks that we can make some progress, and I’ll be reporting to the prime minister as that progress unfolds,” LeBlanc said.
Trump imposed a 25 per cent tariff on all steel and aluminum imports in March, which Canada matched with its own counter-tariffs.
On June 3, Trump doubled the tariffs to 50 per cent — a move that industry analysts say threatens to cripple Canada’s steel industry.
The United Steelworkers Union, which represents 225,000 members in Canada, said in a press release that the 50 per cent tariff would completely shut Canada out of the U.S. market, echoing industry warnings earlier this month.
Unifor national president Lana Payne called Canada’s new measures “positive first steps” in responding to the increased U.S. tariffs, but noted the announcement lacked specific detail for some policies.
“Canada must be prepared to punch back against U.S. tariff aggression but also guard against trade diversion and the increased threat of dumped metals entering the domestic market from China and elsewhere,” Payne said in a statement.
NDP Leader Don Davies also said the measures don’t go far enough and joined Unifor’s calls for stronger Buy Canadian policies and tougher anti-dumping protections, as well as wage subsidies and employment insurance reforms to help affected workers.
“When an issue matters to them, Liberals don’t hesitate to act — but in this case, they’re taking one small step after another, which won’t make a meaningful difference and will ultimately cost many workers their jobs,” Davies said in a statement.
—With files from the Canadian Press
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