In response to steep U.S. tariffs on steel and aluminum, the Canadian government has launched a broad set of retaliatory and protective measures aimed at shielding its domestic industries and workers. The move follows U.S. President Donald Trump’s decision to impose a 25 per cent tariff on all steel and aluminum imports on March 12, which was later doubled to 50 per cent in early June.
Canada’s immediate countermeasure came just a day after the U.S. tariffs took effect, with Ottawa slapping its own 25 per cent levy on a wide range of American imports. The Canadian tariffs target $29.8 billion worth of goods, including $15.6 billion in steel and aluminum. The list spans more than 530 items—from jewelry and scrap metal to umbrellas, candles, and even kitchen sinks.
To further guard against unfair competition, Canada announced new procurement policies on June 19 that prioritize Canadian suppliers and trusted trading partners. The federal government also pledged to confront global overcapacity and unfair trade practices in the metals sector. Prime Minister Mark Carney said adjustments to the counter-tariffs could be made starting July 21, depending on the outcome of ongoing trade talks with Washington.
Additional safeguards were introduced to prevent market dumping. Tariff rate quotas were applied to steel mill products from non-free-trade partners, with a 50 per cent tariff kicking in if imports exceed 2024 levels. Beginning August 1, this rule will extend to countries Canada does have trade deals with—excluding the U.S. and Mexico—with the same surtax applied to imports above the 2024 baseline.
Canada is also cracking down on Chinese steel. Imports of steel melted and poured in China, unless routed through the U.S., will face a 25 per cent tariff. A similar duty has already been in place since October for Chinese steel and aluminum products.
Businesses have a path to relief through exemption or refund programs, especially if the imported materials are used for goods that will be exported within four years, or if the products can’t be sourced from outside the U.S. The Finance Department also outlined an exceptional relief option for cases where tariffs could severely impact the Canadian economy.
In support of struggling businesses, the federal government expanded a $10-billion loan program originally intended for large firms with over $300 million in revenue. The updated eligibility now includes companies with $150 million in revenue applying for at least $30 million in loans. Temporary changes to the employment insurance program have also been implemented, including waiving the one-week waiting period and allowing reduced work hours without triggering layoffs.
Canada’s multi-pronged response reflects a firm stance on defending its industries while offering economic support to businesses and workers caught in the crossfire of cross-border trade tensions.
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