Prime Minister Mark Carney announced a sweeping set of countermeasures Thursday in response to escalating U.S. tariffs on Canadian steel and aluminum, vowing to protect domestic industries while pursuing a resolution through negotiations. Speaking at a press conference in Ottawa, Carney confirmed that he and U.S. President Donald Trump have agreed to a 30-day window to negotiate a potential end to the tariff dispute. In the meantime, Canada is taking bold steps to shield its workers and manufacturers from what Carney described as unjustified and harmful trade actions.
Trump first imposed a 25 per cent tariff on global steel and aluminum imports in March and doubled that rate to 50 per cent earlier this month, sparking international backlash. Canada responded swiftly in March with 25 per cent counter-tariffs on U.S. metal exports. Carney said that Canada’s retaliatory tariffs will be reviewed and potentially adjusted on July 21, depending on the progress made in the broader trade discussions with Washington. “In parallel, we must reinforce our strength at home and safeguard Canadian workers and businesses from the unjust U.S. tariffs,” Carney said.
Effective June 30, the federal government will implement new rules restricting public procurement contracts to steel and aluminum sourced from Canada and other “reliable trading partners.” These procurement protections are aimed at shielding Canadian firms from global market disruptions and potential dumping, a concern amplified by the fact that the U.S. tariffs apply to all countries, not just Canada. Ottawa will also impose strict new tariff rate quotas, limiting imports of steel from non-free trade agreement countries to 100 per cent of 2024 levels. These limits are designed to prevent foreign producers from flooding the Canadian market while bypassing U.S. restrictions.
Carney also announced plans for new tariffs in the coming weeks to further guard against unfair trading practices and industrial overcapacity that threaten Canadian jobs. Two dedicated task forces—one for steel and one for aluminum—will be established immediately to monitor the evolving situation and provide strategic advice to the federal government. Their mandate includes working directly with industry leaders to assess vulnerabilities and recommend protective measures.
The announcement came after leaders from the Canadian Steel Producers Association and the United Steelworkers union visited Parliament Hill to demand immediate action. Industry Minister Mélanie Joly emphasized the urgency, saying the U.S. tariffs have pushed Canada’s steel and aluminum sectors into a state of emergency. “We know that the Canadian steel and aluminum workers are very anxious and they want us to come up with a solution really, really quickly,” Joly said, underscoring the political and economic stakes of the standoff.
As negotiations with the U.S. unfold over the next month, Carney made it clear that Canada is prepared to act decisively to defend its economic interests. The government’s message to Washington is unequivocal: Canada will not remain idle while its key industries are under threat.