OTTAWA — Amid the ongoing trade war with the United States, Prime Minister Mark Carney has announced a slate of new measures to help and protect the steel and lumber industries.
Among the new measures is further limiting foreign steel imports from countries without a free trade agreement with Canada — from 50 to 20 per cent of 2024 levels — a measure largely aimed at reducing Chinese steel imports.
Canada had already reduced those quotas in July, from 100 per cent to 50 per cent, and has imposed a 25 per cent surtax on steel and aluminum goods that originate from China, with the latter being Canada’s second-largest source of steel imports.
Carney made the announcement in Ottawa on Wednesday, as trade talks with the U.S. remain stalled after the fallout over Ontario’s anti-tariff ad last month.
“Steel and lumber are core to Canada’s competitiveness,” Carney said in a statement. “To compete and win in this new global environment, these strategic sectors must be ready to seize new markets at home and around the world.”
The government will also reduce quotas for countries with which Canada has a free trade agreement, going from 100 per cent to 75 per cent of 2024 levels.
The federal government will also cut freight rates to ship steel and lumber across Canada by 50 per cent, starting next spring.
Speaking to reporters earlier on Wednesday, government of Canada officials said the estimated fiscal cost of the measure is $146 million, based on previous costs.
Other measures announced included implementing the Buy Canadian Policy later this year, which requires defence and construction contracts to prioritize Canadian materials, including steel and aluminum, along with a $500-million increase to the previously announced Softwood Lumber Development Program, which gives companies access to government-backed loans, totalling $1.2 billion.
In June, the U.S. increased its tariffs on steel and aluminum imports to 50 per cent, and in October, slapped an additional 10 per cent tariff on softwood lumber, increasing those levies from 35 to 45 per cent. There are also 25 per cent tariffs on some furniture and kitchen cabinet products.
Canada, meanwhile, has 25 per cent counter-tariffs in place on steel and aluminum products originating from the United States.
The federal government did not announce any new measures for the aluminum industry.
Wednesday’s announcement comes one month after Carney told reporters that Canada “had been making progress” on affected sectors like steel and aluminum until U.S. President Donald Trump suddenly ended negotiations with Canada over Ontario’s ad.
Government sources had also told CTV News that Canadian officials were hopeful there could be movement on a steel and aluminum deal by the Asia-Pacific Economic Cooperation summit in South Korea at the end of October.
Since then, talks have yet to resume.
Carney dodged questions on Sunday about the last time he spoke with Trump, saying “who cares?” when pressed at his closing press conference at the G20 summit in South Africa.
On Tuesday, though, Carney admitted that comment was a “mistake” and called it a “poor choice of words.”
A federal government source, meanwhile, tells CTV News Carney is considering a trip to Washington on Dec. 5 to attend the FIFA World Cup draw, where he could cross paths with Trump.