The Canadian government has announced a series of new trade measures aimed at giving domestic steel producers more favorable access to the home market amid rising competitive pressure from imports.

According to the announcement on 26 November, the new rules will take effect on 26 December. Canada will adjust its tariff-rate quotas by reducing the rate from 50% to 20% for imports from countries without a free trade agreement (FTA) with Canada, and from 100% to 75% for countries that have an FTA. Any volume exceeding the quota will face an additional 50% surcharge.

Canada will also impose a 25% tariff on all imported derivative steel products from all markets. The initial list of affected goods is estimated to have a total value of over CAD 10 billion (around USD 7.1 billion).

In addition to tariff measures, the Canadian government has introduced other forms of support to stimulate domestic demand. These include applying the “Buy Canada Policy” to federal contracts worth over CAD 25 million to encourage the use of local products, and reducing interprovincial timber transport costs by 50% starting Spring 2026 to help ease domestic logistics expenses.

According to the statement, Canada’s primary steel manufacturers are facing significant challenges: export output has fallen by as much as 24% in the past year, and nearly 1,000 workers have lost their jobs since the United States imposed new tariffs. Exports account for more than half of primary steel production in Canada, with 90% destined for the U.S. market.