Canada’s New Measures to Defend Steel and Aluminum Industry Against U.S. Tariffs

Trade Update • June 19, 2025

anada’s new federal government has unveiled a sweeping set of measures to protect Canadian steel and aluminum producers from the destabilizing effects of recent U.S. tariffs. As the two countries work toward a new economic and security agreement, the Government of Canada is taking firm steps to ensure that Canadian workers, industries, and economic sovereignty are defended.

The announcement was made today by the Honourable François-Philippe Champagne, Minister of Finance and National Revenue, outlining six decisive actions aimed at countering unjust U.S. trade practices and reinforcing Canada’s domestic industry.

Canada bolsters its measures to protect Canadian steel and aluminum workers and industries

1. Adjusted Counter-Tariffs on U.S. Steel and Aluminum

Effective July 21, Canada will revise its counter-tariffs on U.S. steel and aluminum imports. These changes reflect ongoing developments in trade discussions with the United States and are intended to maintain pressure while rewarding constructive progress. These countermeasures, first introduced in response to unjustified U.S. actions, will continue to defend Canadian market share and worker interests.

2. Reciprocal Procurement Policies Begin June 30

Canada will implement reciprocal procurement rules starting June 30. This means that access to federal procurement contracts will be limited to Canadian suppliers and those from countries offering reciprocal access to Canadian firms under trade agreements. In tandem, the government is actively exploring ways to maximize the use of Canadian steel and aluminum in all government-funded projects, working in coordination with provinces and territories.

3. New Tariff Rate Quotas to Stabilize Market

To prevent harmful trade diversion and support Canadian steel producers, the government will establish tariff rate quotas (TRQs) at 100% of 2024 import levels on steel products from non-free trade agreement (non-FTA) partners. These TRQs will be retroactively applied and reviewed after 30 days, targeting the destabilizing effects caused by U.S. tariff measures and excess global capacity.

4. Targeted Tariffs Based on Melt and Pour / Smelt and Cast

Canada will introduce new tariffs based on the origin of production — “country of melt and pour” for steel and “country of smelt and cast” for aluminum. These measures will be used to combat persistent global overcapacity and unfair trade practices, particularly from jurisdictions not aligned with Canada’s trade standards. Full details will be announced in the coming weeks.

5. Creation of Steel and Aluminum Task Forces

Effective immediately, the government will establish two government-stakeholder task forces, one for steel and one for aluminum. These groups will meet regularly to monitor global market conditions and provide insight for future government decisions. The objective is to maintain a real-time feedback loop with industry to ensure Canada’s response remains effective and timely.

6. $10 Billion Large Enterprise Tariff Loan Facility Remains Open

Large Canadian businesses impacted by the U.S. tariffs can access financial relief through the Large Enterprise Tariff Loan facility, which remains open. This $10 billion program provides liquidity support to otherwise viable businesses facing market disruptions, helping them sustain operations and stabilize financially.

Ongoing Review and Industry Support

The federal government reaffirmed its readiness to take further action as needed. A remission process remains in place to provide temporary relief to businesses adjusting supply chains, with additional approvals expected soon. Moreover, the remission framework will be reviewed to further prioritize Canadian steel and aluminum in Canadian-manufactured products.

Key Voices from Government

“We will take the time we need to negotiate the best deal for Canada, but no longer. In parallel, we are ensuring that workers and industries are protected from the unjust U.S. tariffs.”
— The Rt. Honourable Mark Carney, Prime Minister of Canada

“While we continue to aim for an agreement with the United States, we are taking strong, targeted action to protect the integrity of our steel and aluminum sectors.”
— Hon. François-Philippe Champagne, Minister of Finance and National Revenue

“This is about defending Canadian interests. Canadian steel and aluminum workers will be at the heart of our strategy to build one strong Canadian economy.”
— Hon. Dominic LeBlanc, Minister for Canada-U.S. Trade and Intergovernmental Affairs

“By adjusting our counter-tariffs and protecting our market, we are standing up for our producers, their jobs, and our economic sovereignty.”
— Hon. Mélanie Joly, Minister of Industry

How GHY Can Help?

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By partnering with GHY, your business gains access to the tools and expertise needed to streamline operations and stay competitive in a challenging trade environment.

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