Breaking News: Canada’s Joint Effort to Support Steel and Aluminum Sectors Amid U.S. Trade Disputes
In a significant move aimed at bolstering the Canadian economy and protecting its industrial sectors, the federal government has announced a comprehensive package of measures to support steel and aluminum producers and workers. The government’s efforts come as a response to the looming threat of American customs duties and the risk of unfair trade practices.
Federal Measures to Defend Canadian Industries
The Government of Canada has unveiled a series of measures that include:
- A system of tariff contingents imposing a surcharge of 50% on imports of specific steel products from non-free trade agreement partners exceeding 2024 import volumes.
- Targeted tariff measures on steel and aluminum to address persistent global overcapacity and unfair trade.
- Two commercial monitoring committees to oversee trade trends and enforce new measures.
- Adjustments in price countermeasures on U.S. products.
- Reciprocal supply policies effective June 30, ensuring federal public markets favor Canadian suppliers.
- Strategic infrastructure policies to support investments and innovation in low-carbon steel and aluminum sectors.
These coordinated efforts aim to provide immediate economic relief while laying a foundation for long-term industrial strength.
Importance of Reciprocal Supply Policies
Reciprocal supply policies are considered a cornerstone of the federal strategy. These policies will ensure that only suppliers from countries offering reciprocal access to Canadian businesses can bid for federal contracts. The policy is based on extensive consultations and builds on previous commitments.
As of June 13, 2025, the federal government has modified regulations specifying that only Canadian companies and those from countries with reciprocal supply agreements can file complaints with the Canadian Trade Tribunal (TCCE).
Call to Action for Provincial Partnerships
Minister of Finance and National Revenue, The Honorable François-Philippe Champagne, has reached out to his counterpart, Honorable Éric Girard, request cooperation in implementing similar policies at the provincial level to maximize the effectiveness of these measures.
Beyond Immediate Measures: The Need for Canadian Steel
With approximately 60% of steel used in Canada produced abroad, often through high-carbon methods, the federal government is committed to maximizing the use of Canadian steel in government-funded projects. This strategic move aligns with Canada’s commitment to reducing carbon emissions and adhering to international trade obligations.
The federal government has extended an invitation for more details on implementing reciprocal supply policies, acknowledging regional constraints and the importance of acquisition efficiency.
Strengthening Supply Channels and Economic Stability
By standardizing rules and fostering cooperation at all levels of government, Canada aims to bolster supply channels with trusted allies and strengthen the nation’s production capacity. This alignment promotes fair treatment for businesses and workers, setting a strong tone in international trade negotiations.
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