Canada unveils new support measures to boost steel, lumber industries amid U.S. tariffs

Prime Minister Mark Carney announced Wednesday a series of federal measures aimed at bolstering Canada’s domestic steel and lumber sectors, which have been severely affected by tariffs imposed by the United States.

The new plan includes a significant tightening of import quotas for steel. For countries without free-trade agreements with Canada, the allowable import level will drop from 50 per cent of 2024 levels to just 20 per cent.

Meanwhile, countries outside the U.S. and Mexico that do have trade agreements with Canada will see their quotas reduced from 100 per cent to 75 per cent of last year’s figures.

Any steel imports exceeding these thresholds will face a 50 per cent surtax.

In addition to trade measures, Carney said the federal government is providing an extra $500 million in loan guarantees for the softwood lumber industry to encourage homebuilders to prioritize Canadian-made materials.

Starting next spring, the government will subsidize freight costs for rail shipments of steel and lumber across provincial borders, further supporting domestic production as Canada’s access to the U.S. market becomes increasingly limited.

This is a developing news story. More to come.

– With files from The Canadian Press