Opportunities for cross-border steel trade between the United States and Canada continue to shrink after the new escalation of the tariff conflict between the two countries.
Ottawa has raised duties on most U.
S. steel from 25% to 50% as part of a trade policy review that took effect on September 8. These measures were in response to the 50% tariffs under Section 232, which apply to Canadian exports to the United States worth 27.6 billion Canadian dollars per year and affect not only steel, but also products from related industries, including household appliances, agricultural machinery and electronics.
Canadian Prime Minister Mark Carney has maintained a tough stance in response to tariffs imposed by US President Donald Trump. However, so far this line only increases trade tensions.
On the same day that Canada increased duties, the United States expanded existing Section 232 tariffs to include certain dairy and automotive products. Later, Trump ordered the exclusion of goods of Canadian origin from federal purchases in the United States and from September 29 to impose a complete ban on the import of a number of dairy and alcoholic products from Canada.
Steel beams occupy a special place in the new restrictions. In addition, structural steel products of Canadian origin, including beams, are subject to Section 232 tariffs. Since duties are imposed on top of existing measures, any import of beams from Canada becomes significantly more expensive.
At the same time, Canada does not have its own integrated beam manufacturer. Due to the lack of internal supplies, distributors and construction companies have to look for more remote sources of procurement, which increases costs and delivery times. According to market participants, prices remained at a record high in September due to limited supply.
Tariffs have already reduced supplies and made steel purchases more expensive in both the United States and Canada. Buyers on both sides of the border report that they are forced to look for alternative suppliers, which increases costs and slows down logistics.
Canadian steel producers are also under pressure due to the current U.
S. Section 232 duties and the ongoing trade dispute with the United States. According to the Office of International Trade, in the first half of the year, imports to the United States of flat and long products from Canadian carbon and alloy steel decreased by almost 52% year-on-year and amounted to 953,962 tons. This followed a drop of almost 20% in the first six months of 2025, following President Trump's imposition of 25% Section 232 tariffs in March of that year.
Currently, South Korea is the largest supplier of flat and long carbon steel products in the United States, while Canada retains the second largest supplier.