The Canadian government has announced new trade measures to reduce foreign steel imports, focusing especially on steel coming from China.
The goal is to shield Canada’s steel industry from oversupply and trade disruptions caused by global market shifts.
The new policy reduces the tariff-rate quota for countries without a free trade agreement with Canada. Their allowed import volume will drop to 50 per cent of the amount brought in during 2024.
Any imports beyond that will face a 50 per cent tariff.
In addition, new duties will apply to 25 per cent of steel imports from non-U.S. countries if the steel was originally melted and poured in China before the end of July.
Canada’s steel import figures for 2024 show that the country imported over $16 billion in steel, with around 10 per cent of that from China.
The U.S. remained the largest source, supplying almost half. On the export side, Canada shipped more than $12 billion in steel, 91 per cent of it going to the United States.
While countries with trade agreements, except the U.S., will still be allowed to export up to 100 per cent of their 2024 levels, any imports above that will also face a 50 per cent duty.
Prime Minister Mark Carney said these changes are in response to recent trade actions by the U.S., which have reshaped global steel supply chains.
He noted that Canada needs to respond carefully to avoid being flooded with excess steel that can no longer enter the American market.
Carney stated that Canada will start adjusting its trade partnerships and look to rely more on domestically produced steel for national projects.
He also mentioned that while no immediate changes are planned for tariffs on the U.S., all steel-related trade agreements will be reviewed in line with ongoing discussions.
The Canadian government aims to prevent steel diverted from U.S. markets from entering Canada, which has traditionally been more open.
These steps are part of broader efforts to secure the local industry and ensure Canadian steel is prioritized in infrastructure projects.