Particle.news
Download on the App Store

Canada Tightens Steel Quotas, Imposes New Tariffs, and Pledges C$500 Million in Lumber Aid to Counter U.S. Duties

Ottawa seeks to shift buying to domestic producers with talks with Washington paused.

Overview

  • Import quotas are being cut to 20% of 2024 levels for countries without a free-trade deal and to 75% for partners other than the U.S. and Mexico.
  • Steel shipped above the new caps will face a 50% surtax, and a global 25% tariff will hit derivatives such as wind towers, prefabricated buildings, fasteners and wires.
  • Rail freight subsidies will halve interprovincial shipping costs for steel and lumber starting in early 2026 to reduce domestic delivery expenses.
  • Ottawa is adding C$500 million in loan guarantees for softwood producers, expanding Buy Canadian rules for large federal contracts, and allocating C$100 million to bolster work-sharing.
  • The government projects roughly C$850 million in new domestic demand for Canadian steel, and Carney says he is ready to re-engage with the U.S. during a Washington visit on Dec. 5.