Carney curbs steel imports to prop up industry hard hit by Trump’s tariffs

Prime Minister Mark Carney has unveiled a new plan to support Canada’s struggling steel and aluminum sectors, which have been heavily impacted by President Donald Trump’s tariffs. The measures announced include a quota on foreign steel and a proposed tax increase on U.S. imports if a trade deal cannot be reached within a month.

Carney stated that Canada’s counter-tariffs on U.S. steel and aluminum products will be adjusted on July 21, depending on the progress of negotiations with Trump. Despite Trump’s recent increase in tariffs on steel and aluminum, Canada has refrained from matching the rate hike as talks continue to resolve the trade dispute.

Following discussions at the G7 summit, Carney and Trump have agreed to work towards a trade agreement within 30 days. In response, Carney has introduced a new “tariff rate quota” to regulate foreign steel imports, imposing high tariffs on anything exceeding the limit. This move aims to boost the competitiveness of Canadian steel and support an industry that has suffered significant losses due to Trump’s tariffs.

The program is designed to incentivize Canadian companies to use domestic steel by making imported steel more expensive. Carney emphasized the importance of strengthening the domestic industry and protecting Canadian workers and businesses from the impact of unjust U.S. tariffs.

“We must reinforce our strength at home and safeguard Canadian workers and businesses from the unjust U.S. tariffs that exist at present,” Carney stated during a press conference on Parliament Hill.

This new initiative reflects Canada’s commitment to protecting its steel and aluminum sectors in the face of external challenges. By implementing targeted measures to support domestic production and competitiveness, the government aims to mitigate the impact of trade disruptions and secure the future of these vital industries.