Ontario Construction News staff writer
Prime Minister Mark Carney announced a series of measures last week in response to recent U.S. tariffs on Canadian steel and aluminum products. These actions are designed to protect Canadian industries, support workers, and stabilize the domestic market amid ongoing trade tensions.
Key steps include:
- Adjusting Counter-Tariffs: Effective July 21, Canada will recalibrate its existing counter-tariffs on steel and aluminum to align with progress made in broader trade discussions with the United States.
- Reciprocal Procurement Policies: Starting June 30, the government will limit access to federal procurement contracts to Canadian suppliers and those from trusted trading partners who offer reciprocal market access to Canadian firms. Coordination with provinces and territories is underway to increase the use of Canadian steel and aluminum in government-funded projects.
- New Tariff Rate Quotas: To shield Canadaโs steel sector, new tariff rate quotas will be established, capping imports of steel from non-free trade agreement countries at 100% of 2024 levels. These quotas, applied retroactively, aim to prevent market disruption caused by the U.S. tariffs and will be reviewed within 30 days.
- Additional Tariff Measures: In the coming weeks, further tariffs will be introduced to address global overcapacity and unfair trade practices, with assessments based on the โcountry of melt and pourโ for steel and โcountry of smelt and castโ for aluminum.
- Industry Task Forces: Two new government-stakeholder task forcesโone for steel and one for aluminumโwill be immediately formed to monitor market conditions and support policy decisions that benefit Canadian industries and workers.
- $10 Billion Tariff Loan Facility: The governmentโs Large Enterprise Tariff Loan program remains available to support large businesses facing financing challenges due to the tariffs, helping them maintain operations and recover financial stability.
The government stressed its readiness to take further action as necessary and continues to engage with provinces and territories to reflect regional interests. A remission process is also in place to allow businesses time to adjust their supply chains, with additional relief expected soon.
As Canada seeks to redefine its economic and security partnership with the United States, officials emphasized their commitment to defending Canadian interests, supporting workers, and building the countryโs economy into the strongest in the G7.