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Canada has announced comprehensive new support measures for its lumber and steel sectors. The plan addresses challenging US trade policies while strengthening domestic markets. Prime Minister Mark Carney unveiled the strategy during a Wednesday news conference.
The announcement comes amid stalled trade talks with Washington. Consequently, Canada is taking independent action to protect these vital industries from foreign competition and US tariffs.
Strengthening Domestic Market Protection
Canada will significantly tighten import restrictions on steel. The government will reduce quotas for non-free trade agreement countries to 20% of 2024 levels, down from 50%. Additionally, FTA partners will see their quotas cut to 75% of 2024 levels.
The measures include new global tariffs. Canada will impose a 25% tariff on targeted steel-derivative products. Furthermore, the government will enhance border measures to combat steel dumping more effectively.
Supporting Industry and Workers
The government will implement several support programs. Ottawa will work with railway companies to cut freight rates for domestic steel and lumber transport by 50%. This initiative begins in early 2026.
Other support measures include:
- Promoting locally made steel and lumber in homebuilding
- Providing financial aid for companies facing tariff impacts
- Supporting workforce maintenance during market challenges
- Helping businesses address liquidity issues
Trade Context and Economic Impact
The US has imposed significant tariffs on Canadian exports. President Trump’s administration maintains 50% tariffs on steel and 45% on softwood lumber. These policies have heavily impacted both sectors.
Prime Minister Carney acknowledged the fundamental shift in US-Canada relations. “The decades-long process of an ever-closer economic relationship between Canada and the US is now over,” he stated. He noted Canada’s export vulnerability, with over 75% of exports going to the US market.
The steel industry contributes significantly to Canada’s economy. It adds over CA$4 billion to GDP and employs more than 23,000 workers directly. Both sectors face substantial challenges from current US trade policies.
Carney confirmed he will meet with President Trump during December’s FIFA World Cup draw. He expressed Canada’s readiness to resume trade talks when the US is willing to re-engage.
The new measures represent Canada’s strategic response to protect key industries while navigating complex international trade relationships. The government aims to create sustainable domestic markets while addressing immediate tariff challenges.
