(Bloomberg) — Canada will reduce the amount of foreign steel importers can bring into the country tariff-free, a move to help domestic producers suffering from US President Donald Trump\u2019s levies on the sector.<\/p>\n
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The government will tighten \u201ctariff rate quota\u201d levels for steel products made in countries that don\u2019t have a free-trade agreement with Canada. Producers from those nations will be able to ship half of last year\u2019s volumes \u2014 above that level, a 50% tariff will apply.<\/p>\n
Steel-producing countries that have existing trade deals with Canada, such as South Korea, will have more flexibility. They\u2019ll be allowed to ship steel up to 2024 levels before tariffs kick in.<\/p>\n
But there won\u2019t be any change right now to tariffs on US steel, Prime Minister Mark Carney said Wednesday. His government is trying to strike a trade deal with the Trump administration ahead of an Aug. 1 deadline.<\/p>\n
\u201cThe current trade situation with the United States, and unfair trade practices from other countries \u2014 that combination guts our steel industry,\u201d Carney said at a press conference at a steel manufacturing plant in Hamilton, Ontario. \u201cFor Canada to build big things again, we need our steel industry to advance, not retreat.\u201d<\/p>\n
Shares of Algoma Steel Group Inc. jumped 4.5% in Toronto, the biggest gain in a month.<\/p>\n
Canada\u2019s steel producers have warned of dramatic job cuts after Trump hiked import taxes on foreign steel and aluminum to 50%. Already, the industry says it has significantly reduced shipments and faced close to 1,000 job losses.<\/p>\n
Canada has so far decided not to match those tariffs, keeping its retaliatory tax on US steel products at 25%.<\/p>\n
Carney said the US trade deals with other countries are going to include \u201cvery high tariffs\u201d and that may push steel products into Canada\u2019s comparatively open market. \u201cIt\u2019s important that we protect our market from those secondary effects,\u201d he said.<\/p>\n
Catherine Cobden, chief executive officer of the Canadian Steel Producers Association, told BNN Bloomberg Television that the government measures are \u201ca big move forward.\u201d<\/p>\n
She applauded Carney\u2019s decision to apply a 25% surtax on steel imports from all countries \u2014 except the US \u2014 that contain steel melted and poured in China. \u201cIt is huge,\u201d she said about China\u2019s production, with \u201chundreds of millions of tons of steel that they produce, that they do not need, that they then dump in markets like Canada\u2019s.\u201d<\/p>\n
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The federal government will also change its procurement rules to require companies that have contracts with the federal government to buy steel from Canadian producers.<\/p>\n
On Wednesday, the government also laid out efforts to help workers that have faced job cuts since tariffs were imposed. Canada will deploy C$70 million ($51 million) to provide training and income support for as many as 10,000 affected steel workers. It\u2019s also providing C$1 billion to a fund designed to help steel firms advance new projects.<\/p>\n
\u201cWe have the potential to become our own best customer for steel, but we will lose that ability if we don\u2019t manage the profound transformation now underway in the industry,\u201d said Carney.<\/p>\n
(Updates with Algoma Steel share price and other new information, including comments from the Canadian Steel Producers Association CEO.)<\/p>\n
Most Read from Bloomberg Businessweek<\/p>\n
\u00a92025 Bloomberg L.P.<\/p>\n","protected":false},"excerpt":{"rendered":"(Bloomberg) — Canada will reduce the amount of foreign steel importers can bring into the country tariff-free, a…\n","protected":false},"author":3,"featured_media":68738,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[48648,3638,64,2147,48649,79,18809,5005,48651,48650,48652,67,132,68],"class_list":{"0":"post-68737","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-algoma-steel","9":"tag-bloomberg","10":"tag-business","11":"tag-canada","12":"tag-canadian-steel-producers-association","13":"tag-economy","14":"tag-mark-carney","15":"tag-president-donald-trump","16":"tag-steel-industry","17":"tag-steel-products","18":"tag-trade-deals","19":"tag-united-states","20":"tag-unitedstates","21":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/114866203062249179","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/68737","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=68737"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/68737\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/68738"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=68737"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=68737"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=68737"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}