Prime Minister Mark Carney announced measures to support Canada’s steel industry on Wednesday. The main feature of these measures are the expanded tariff rate quotas which will be imposed on steel coming in from other countries.
Starting on August 1, countries other than the U.S. and Mexico that have a free trade agreement with Canada can import steel at a reduced tariff rate until they meet the 2024 levels of steel imported. For countries without a free trade agreement with Canada, they can only send 50 per cent of the 2024 levels to Canada at a reduced tariff rate.
Tariff rate quotas (TRQs) were first implemented by the Carney government on June 27, but only applied to countries without a free trade agreement with Canada. The United Steelworkers (USW) union criticized these measures for not addressing countries who have faced allegations of dumping cheap goods into the Canadian economy.
A release from the Department of Finance says this move responds to both U.S. tariffs on steel and global steel overproduction. Foreign steel exporters are trying to find new places to sell their steel which includes Canada. The Department of Finance says import limits will help prevent the Canadian market from being overwhelmed with cheap steel, while ensuring businesses can continue to get the supply they need.
The changes to Canada’s TRQs come six days after U.S. president Donald Trump released a letter on his social media platform Truth Social saying he will increase the 25 per cent blanket tariffs on Canadian goods to 35 per cent.
While the expansion of TRQs meets the USW’s demand for countries with free trade agreements to be included, their calls for immediate support to workers remain unheard.
With copper tariffs of 50 per cent also likely taking effect August 1, and existing steel, aluminum and automotive tariffs, thousands of jobs are at stake. USW is demanding urgent action including reforming Employment Insurance for better access and longer support and implementing a wage subsidy program with job guarantees similar to pandemic supports.
“Enough is enough. Workers need action, not empty words,” said USW National Director Marty Warren. “Canada must make it clear that we will not be bullied into surrendering our industries and jobs.”
Carney’s Wednesday announcement also highlighted that the government will provide up to $1 billion to the Strategic Innovation Fund. These dollars are intended to strengthen domestic supply chains.
“This investment will help the sector pivot to emerging opportunities, modernize production capabilities, and better serve the Canadian market,” The department of finance wrote in a web statement.
Alongside the money in the Strategic Innovation Fund, the government is also investing $70 million over three years which will contribute to the retraining and upskilling of up to 10,000 steel workers.
While TRQs and investment in the steel industry present some relief, president of the Canadian Labour Congress Bea Bruske, said the most recent tariff threats from Trump necessitate a bold response.
“Appeasement does not work. In response to Trump’s demands, Canada has spent millions to address border issues, we rescinded our digital services tax, and scaled back counter-tariffs,” Bruske said. “Like a bully, Trump’s only response to Canada’s good-faith efforts is nothing but escalation.”
She called for counter-tariffs, export taxes on Canadian energy sold to the U.S. and a mandate that all national infrastructure projects use Canadian steel, aluminum, and lumber.
“To every worker in Canada: This won’t be easy,” Bruske said. “There will be disruptions. Some of us will face layoffs. And there will be those who try to divide us. But Canadian workers are not strangers to hard times. We know how to fight—and we know how to win. So, let’s hold strong.”
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