Canada Announces Additional Measures to Protect Steel and Aluminum Industries and Workers

Strategic Insights -

The federal government has taken steps to safeguard its steel and aluminum sectors, as it negotiates a new economic and security partnership with the United States. Canada's Department of Finance has introduced six new protection measures, aimed at responding to the ongoing trade tensions. The measures include adjusting counter-tariffs, limiting access to federal procurements, and establishing tariff rate quotas to stabilize the domestic market. Two government-stakeholder task forces will be created to monitor trade and market trends. A $10-billion loan program will also be made available to support large businesses struggling to access traditional financing.

Key Takeaways:

  • Canada will adjust its existing counter-tariffs on steel and aluminum products on July 21 to levels consistent with progress in the broader trading arrangement with the United States.
  • The federal government will begin implementing policies to limit access to federal procurements on June 30, to suppliers from Canada and reliable trading partners.
  • A new tariff rate quota of 100 per cent of 2024 levels will be established on imports of steel products from non-free trade agreement partners to prevent trade diversion.
  • The quotas will be applied retroactively and reviewed in 30 days.
  • Two new government-stakeholder task forces – one for steel and one for aluminum – will be created to monitor trade and market trends.
  • The task forces will meet regularly to support government decision making.
  • A $10-billion Large Enterprise Tariff Loan program will be established to support eligible large businesses facing difficulties in accessing traditional financing.
  • The program is meant to help employers sustain their operations and return to normal as the market stabilizes.

Statistics:

  • July 21: Date when Canada will adjust its existing counter-tariffs on steel and aluminum products.
  • June 30: Date when the federal government will begin implementing policies to limit access to federal procurements.
  • 100 per cent of 2024 levels: The new tariff rate quota on imports of steel products from non-free trade agreement partners.
  • $10 billion: The total amount of the Large Enterprise Tariff Loan program.
  • $12.6 billion: The amount of tariffs on steel products imposed by Canada in response to the US tariffs.
  • $3 billion: The amount of tariffs on aluminum products imposed by Canada in response to the US tariffs.
  • $14.2 billion: The amount of additional imported US goods subject to Canadian tariffs.
  • 25 per cent: The US tariffs imposed on Canadian steel and aluminum products.

Sources:

  • Canada's Department of Finance news release, June 19
  • Abbotsford News, March 12, 2025
  • Canada's Department of Finance, unidentified source for 2024 levels of tariff rate quotas.