PROCUREMENT AND DOMESTIC MEASURES
As part of Thursday’s announcement, Carney unveiled new procurement rules that will prioritize domestic producers. Canadian firms and international partners with reciprocal, tariff-free access will now be allowed to compete for federal contracts involving steel and aluminum.
The Canadian government will also implement new tariff-rate quotas set at 100 per cent of 2024 levels for steel imports from non-free trade agreement countries. This is intended to stabilize the domestic market and prevent harmful trade diversion.
“We are united in working on all forms of support for the industry… that starts with buying Canadian steel and aluminum for federal projects,” Carney said.
Canada exports more than 90 per cent of its total steel and aluminum to the US, and imports about one-fifth of US steel and half of its aluminum, according to the Royal Bank of Canada. This underscores the deep integration of metals trade between the two nations.
Under Carney’s leadership, Canada has launched major infrastructure initiatives—from defense to energy and housing—that are expected to require massive amounts of steel and aluminum.
SUPPORTING DOMESTIC INDUSTRY
Carney said the government would also favor the use of Canadian steel and aluminum in Canadian-made products. A new task force will be created to monitor the impact of tariffs on steel and aluminum markets and recommend responsive measures as needed.
