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Tariffs

Canada Announces Measures to Protect Steel and Aluminium Industries Amid Ongoing Trade Tensions

Strategic Insights

— 1 min read

In an effort to safeguard Canadian workers and maintain the country's economic resilience, the Canadian government has announced a series of measures to protect its steel and aluminium industries. This move comes in response to escalating tariffs imposed by the United States, which significantly impacted these sectors. The measures include adjustments to counter-tariffs, reciprocal procurement policies, and targeted tariffs based on the origin of production, all designed to address the challenges faced by the steel and aluminium industries.

Key Takeaways:

  • The Canadian government has adjusted counter-tariffs on U.S. steel and aluminium imports, effective July 21, 2025, to reflect ongoing trade negotiations with the United States.
  • Reciprocal procurement policies will be implemented starting June 30, 2025, limiting access to federal procurement contracts to Canadian suppliers and suppliers from countries offering reciprocal access to Canadian entities.
  • Tariff rate quotas (TRQs) will be imposed on imports of steel products from partners not connected through trade agreements, set at 100% of 2024 imports quantities.
  • Targeted tariffs will be applied based on the "country of melt and pour" for steel and "country of smelt and cast" for aluminium.
  • The government has established two task forces to monitor market trends and provide insights for future decisions.
  • A $10 billion program, the Large Enterprise Tariff Loan facility, will be set up to support eligible large businesses facing difficulties due to U.S. trade actions.

Statistics:

  • 50%: the increased tariffs on Canadian steel and aluminium imports imposed by the United States on June 4, 2025.
  • $10 billion: the amount of the Large Enterprise Tariff Loan facility set up to support eligible large businesses.
  • July 21, 2025: the date when the adjusted counter-tariffs on U.S. steel and aluminium imports will take effect.
  • June 30, 2025: the date when reciprocal procurement policies will be implemented.

Sources:

  • "Canada announces measures to protect steel and aluminium industries amid US tariffs" (Source: Mondaq)
  • "Government of Canada" (Source: Government of Canada, no date)
  • "Canada-US trade tensions: what you need to know" (Source: CBC News, no date)

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