Canada moving from reliance to resilience amid new steel tariffs, says premier
Prime Minister Mark Carney announced on Wednesday that Canada will revise its trade rules and invest in domestic production to safeguard its steel industry, marking a significant shift away from dependence on the US.
"Let’s be clear, Canada will be one of the countries most impacted by these developments," Carney said at a press conference, referring to US trade actions that are affecting global steel markets, News.Az reports citing foreign media.
"Over time, we became too dependent on the US as our biggest customer, with more than 90% of our steel exports going south of the border," he added.
Saying that Canada will now prioritize using Canadian steel at home and strengthen local production, Carney announced changes to tariff rate quotas that will take effect by the end of July.
Canada will lower the quota for steel imports from non-free trade agreement (FTA) countries to 50% of 2024 volumes, with a 50% tariff on amounts above that. For FTA partners other than the US, the quota will remain at 100% of 2024 volumes, with a 50% tariff on excess.
While existing trade rules with the US will not change, Carney said Canada and the US are currently working towards an agreement and added: "We're working for the best deal for Canada. We have put in place a series of retaliations."
He also announced that Canada will apply a 25% tariff on all steel imports, including steel melted and poured in China.
To support the industry, Canada will provide $1 billion through the Strategic Innovation Fund for steel companies to grow local production, create jobs, and supply new markets.
"At this hinge moment in our history, Canada is shifting from reliance to resilience," Carney said, adding: "We're giving ourselves far more than any foreign government can ever take away."
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