Particle.news
Download on the App Store

Ottawa Slashes Steel Import Quotas, Adds $500 Million for Lumber and Cuts Freight Costs

The moves respond to steep U.S. tariffs that have squeezed Canadian mills, with cross‑border talks still stalled.

Overview

  • Steel import quotas for non‑FTA countries will drop to 20% of 2024 levels, while FTA partners (excluding the U.S. and Mexico) fall to 75%.
  • Canada will levy a global 25% tariff on targeted steel‑derivative products and tighten border measures against dumping.
  • The government will work with railways to halve interprovincial freight rates for steel and lumber, subsidizing any shortfall beginning in early 2026.
  • Softwood producers will get $500 million in federal loan guarantees, bringing available support for the sector to about $1.2 billion.
  • Ottawa will add Buy Canadian procurement rules and roll out aid for workers and businesses, with officials estimating $854 million in domestic steel demand opened by the quota shifts.