The federal government is giving $500 million in loan guarantees to softwood lumber industry and placing limits on imported foreign steel as the two sectors reel under tariffs from U.S. President Donald Trump’s tariffs, Prime Minister Mark Carney said Wednesday.
Ottawa is cutting back on steel imports from countries that do not have a free trade agreement with Canada from 50 per cent to 20 per cent of last year’s levels.
“This will open up more than $850 million in new domestic demand for Canadian steel,” Carney said.
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Canada will reduce tariff free steel imports from non-CUSMA free trade area partners from 100 per cent of 2024 levels to 75 per cent, he added.
Canada will also impose “a global 25 per cent tariff on targeted imported steel derivative products, such as wind towers, prefabricated buildings, fasteners and wires to grow demand for Canadian made steel.”
In July, Carney reduced the quota for imports from countries without free trade agreements to 50 per cent of 2024 levels and levied a 50 per cent tariff on any imports above the quota.
The moves come as the steel industry continues to be hammered after U.S. President Donald Trump levied 50 per cent tariffs on Canadian steel in June.
Softwood lumber, which has long been subjected to U.S. tariffs, is currently taxed at 45 per cent after the Trump administration’s hike last month.
Trump cut off trade talks with Canada last month after the Ontario government ran television ads in U.S. markets using 1987 remarks from former U.S. president Ronald Reagan to highlight the downside of tariffs.
More to come.
–with files from Canadian Press