The federal government plans to limit foreign steel imports and cut interprovincial rail freight rates in a bid to support Canada's steel industry threatened by damaging U.S. tariffs.
A government official not authorized to speak about details ahead of the public announcement told The Canadian Press that Prime Minister Mark Carney will announce new measures Wednesday.
The prime minister's public itinerary says Carney will announce "new measures to protect and transform Canadian strategic industries" in at 3:15 p.m. ET.
The official said the government plans to cut steel imports from countries where Canada does not have a free trade agreement from 50 per cent to 20 per cent of 2024 levels. That move aims to allow Canadian steel producers to fill the gap in the domestic market, opening up an estimated $854 million in domestic demand.
In July, Carney reduced the quota for imports from countries without free trade agreements to 50 per cent of 2024 levels, and levied a 50 per cent tariff on any imports above the quota.
Imports from countries with a free trade agreement are also expected to be cut, though it's unclear by exactly how much. In July, the government applied a 50 per cent tariff on those countries — except the U.S. — for any steel brought in, above and beyond what was imported in 2024.
The government also plans to work with CN Rail to cut freight rates by 50 per cent when shipping steel interprovincially. If CN can't oblige a lower rate, Ottawa will subsidize the difference, the official said.
It's unclear if the same measures and subsidy will be applied to steel bound for the North, where construction materials are either shipped on sealift boats to Nunavut communities during open-water season, and trucked into the N.W.T. and the Yukon.
The moves come as the steel industry continues to be hammered after U.S. President Donald Trump levied 50 per cent tariffs on Canadian steel in June.
Trump cut off trade talks with Canada last month after the Ontario government ran television ads in U.S. markets using 1987 remarks from former U.S. president Ronald Reagan to highlight the downside of tariffs.
Carney promised supports "this week" for the steel, auto and lumber sectors Tuesday in the House of Commons, while getting pressed by Conservatives for a response to his comments over the weekend when he responded "Who cares?" to a question on the last time he spoke with Trump.
The government official told The Canadian Press that Carney is also expected to announce supports for the softwood lumber industry on Wednesday.
Picture Courtesy: THE CANADIAN PRESS/Adrian Wyld
