On June 19, Canada's Minister of Finance and National Revenue François-Philippe Champagne announced a new six-point package of measures to protect steel and aluminum producers and workers in response to “unjust and unjustified” US tariffs. The announcement coincided with Ottawa's negotiation of a new economic and security partnership with the United States.
The first step will be to update the counter-tariff levels on steel and aluminum products as of July 21, in line with progress in trade talks with the United States. Also starting June 30, a “reciprocal public procurement policy” will be implemented, allowing only suppliers from Canada and its trading partners with reciprocal access to participate in federal procurement.
The government will impose a 100% tariff quota on steel imports from non-US free trade agreement countries, based on 2024 levels. The quotas will be applied retroactively and reviewed within 30 days, with the aim of protecting the domestic market against market instability and trade diversion.
In the coming weeks, additional customs measures against global overcapacity and unfair trade practices will be introduced. These measures will be applied on the basis of “country of melt and pour” for steel and “country of smelt and cast” for aluminum.
Two new government-industry monitoring committees will be set up separately for steel and aluminum to closely monitor the sector, while the currently open USD 10 billion customs credit program for large-scale businesses will provide access to financing.
Prime Minister Mark Carney stated that in addition to the ongoing negotiations with the US, all necessary measures will be taken to protect Canadian workers and industry. “Canadian manufacturers can count on us,” Champagne emphasized, underlining the government's resolve.
A limited exemption process is also in place for companies affected by the tariffs. The government has also announced that it is considering new regulations to encourage Canadian sourcing of steel and aluminum.
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