Canadian Prime Minister Mark Carney has promised to crack down further on the amount of cheap foreign steel entering the country by the end of the month, as the domestic industry continues to suffer from United States President Donald Trump’s tariffs.
The announcement was welcomed by the industry, which had already seen layoffs and lower production levels in the weeks since the U.S. implemented steep import taxes.
Trump's tariffs saw an initial 25% levy on Canadian steel in March, which later doubled to 50% in June. Carney has indicated that the tariffs may remain in place despite a bilateral agreement.
Carney said the quota changes "will ensure Canadian steel producers have a bigger share of the Canadian market."
Under the new quota, any steel products from non-free trade agreement partners, like China and Turkey, will see their tariff rate quota tightened to half of 2024 volumes.
Any imports exceeding quota will incur a 50% tariff.
Carney also added that large projects, like the push to build more housing and strengthen the defence sector, will use Canadian steel.
Carney noted that currently accounts for around two-thirds of Canada’s steel consumption, while 90% of Canadian steel exports go to the U.S. at a level of dependency the prime minister described as “unsustainable”.
"Imports supply almost two-thirds of current Canadian consumption of steel, compared to less than one-third for the United States and less than one-sixth for the European Union," Carney said.
Canadian Steel Producers Association president and CEO, Catherina Coden, said that she welcomed the new changes with relief.
"I can't sit here and tell you that it will completely offset the loss from the United States, but it will help us," Cobden told CBC.
Cobden also noted that there was a 30% drop in steel production in May and that her group is bracing for a further drop following the 50% tariff rate.
