Canada Issues Updated Steel and Aluminum Policies

The Canadian government announced new policies aimed at protecting its steel and aluminum sectors in response to U.S. tariffs. President Trump has doubled the tariffs on steel and aluminum imports from 25% to 50%, a move that has significantly impacted Canada’s metal sectors. As the largest supplier of steel and aluminum to the U.S., Canada is feeling the effects across its economy. 

The announcement is Prime Minister Mark Carney’s direct response to the U.S. policies, and an attempt to protect the domestic metal industry and its workers. While Carney and Trump remain in negotiations to resolve the ongoing trade dispute, Canada’s new measures are designed to mitigate potential harm if no agreement is reached by next month. 

Among the proposed actions are increased tariffs and tighter import controls. Beginning June 30, they also plan to limit bidding on government contracts involving steel and aluminum products to Canadian companies or companies from countries that allow duty-free imports from Canada. 

If a formal agreement isn’t reached, counter-tariffs against U.S. steel and aluminum will take effect on July 21. In the meantime, a time-sensitive remission process is being implemented to give companies flexibility to adjust their supply chains.  

For more information, you can read the full release from the Canadian government here. If you have further questions, please reach out to Scarbrough today for assistance.