Canada has ramped up its protective measures on foreign steel and aluminum by enforcing tariff-rate quotas tied to 2024 import levels. The move comes in response to President Trump’s aggressive 50% tariff increase on U.S. steel and aluminum imports. Canadian officials from the Steel Producers Association and Institute of Steel Construction warned the current measures aren’t sufficient, with the domestic industry suffering roughly 1,000 layoffs since March.
In a policy update, Canada indicated it would expand protections if negotiations don’t progress, linking further tariff adjustments to the outcome of upcoming trade talks with the United States. Prime Minister Mark Carney also threatened matching tariffs on U.S. metal imports should no agreement be reached by July 21. Officials emphasized these steps are interim measures designed to stabilize the sector while discussions continue.
Domestic industry advocates pressed for broader quotas, including imports from free-trade countries, citing an influx of diverted shipments. The government acknowledged this concern and signaled readiness to recalibrate the program to better shield producers from market disruptions.
Canada’s industries call this plan a welcome initial effort but say a tougher stance will be needed to protect jobs and local output. The government appears poised to escalate if diplomacy yields no results.