Canada Moves to Limit Steel Imports in Response to Trump Tariffs

Prime Minister Mark Carney announced new trade measures Wednesday aimed at curbing foreign steel imports and protecting Canada's domestic industry from escalating U.S. tariffs.

Speaking at a press conference in Hamilton, Ontario, the heart of Canada’s steel sector, Carney unveiled tighter restrictions on tariff-free steel imports from countries without trade agreements with Canada. Under the new rules, Canada will reduce its tariff rate quotas from 100% to 50% of 2024 import volumes. Any imports exceeding that threshold will face a 50% duty.

Carney said the policy shift was necessary following a series of aggressive tariffs imposed by U.S. President Donald Trump, who first levied a 25% duty on Canadian steel in March before doubling it to 50% in June.

“Imports make up nearly two-thirds of Canada’s steel use, and over 90% of our steel exports go to the United States,” Carney said. “This level of dependency is unsustainable.”

The new trade rules also target Chinese-origin steel. An additional tariff will be imposed on steel imports from non-U.S. countries that contain steel “melted and poured in China.”

However, products covered under the Canada-U.S.-Mexico Agreement (CUSMA) will remain exempt.

In a broader policy shift, the federal government will now require all contractors working on public projects to use Canadian steel. This includes major infrastructure efforts such as housing development and defense projects.

“These changes mean we’re giving ourselves far more than any foreign government can take away,” Carney added.

Industry leaders welcomed the move. Catherine Cobden, president of the Canadian Steel Producers Association, told CBC News that domestic production had declined by 30% since the U.S. tariffs began. “This is something we should have been doing all along,” she said. “It’s fantastic to see we are making progress.”