Canada is strengthening its tariff quota system for steel imports to soften the impact of U.
S. tariffs on its steel industry. The response measures are reported on the website of the Canadian Government.
As noted, Canadian manufacturers have become export-oriented and therefore vulnerable to changes in international trade policy. In 2024, they exported just over 50% of their annual production, 90% of which went to the United States. The growing trade pressure and market disruptions require a clear and proactive response.
To help domestic producers suffering from US tariffs imposed on the sector, Canada will reduce the duty-free volume of steel imports into the country.
From August 1, 2025, a 50% tariff will be applied to imports from countries with a free trade agreement with Canada (with the exception of the United States and Mexico) exceeding the volume of 2024.
For countries that do not have free trade agreements with Canada, the government has reduced the duty-free quota to 50% of the volume in 2024 from 100% previously in effect. Imports over the quota will face a 50% tariff.
There will also be a 25 percent additional tax on imports from all countries except the United States containing steel smelted and bottled in China.
The country's authorities will consult with industry to finalize adjustments to other elements of the tariff quota design.
The government will also provide up to $1 billion in a strategic innovation fund to support the steel industry's transition to new business lines and strengthen domestic supply chains.
In addition, the federal government will change its procurement rules. Companies that sign contracts with the government will be required to buy steel from Canadian manufacturers whenever possible.
