Prime Minister Carney announces new measures to protect and transform Canada’s steel and lumber industries

CANADA, November 26 - The world is changing rapidly. The United States, the world’s largest economy, is fundamentally reshaping all its trade relationships, causing major disruption and upheaval for Canadians. It is time to transform our economy from one that is reliant on a single trade partner to one that is stronger, more self-sufficient, and resilient to global shocks. That means working with urgency and determination to transform our strategic industries so they can adapt, compete, and win in this new global environment.

Canada’s new government has moved quickly to protect and strengthen the sectors most affected by U.S. tariffs – introducing new measures to help workers gain new skills, support businesses as they modernise and diversify, and boost domestic demand for Canadian goods. As we build the economy of the future, we’re ensuring workers and industries are ready to seize its opportunities.

Building on previously announced measures to help transform the Canadian steel and softwood lumber industries, the following new initiatives were announced today.

Canada’s new government will:

1. Further limit foreign steel imports to ensure that Canadian steel producers have better access to the domestic market
   • Canada will tighten the tariff rate quota levels for steel products from non-free trade agreement (FTA) partners from 50% to 20% of 2024 levels.
   • For non-CUSMA partners with which we have an FTA, Canada will reduce tariff rate quota levels for steel products from 100% to 75% of 2024 levels.
   • Canada will impose a global 25% tariff on targeted imported steel-derivative products such as wind towers, prefabricated buildings, fasteners, and wires.
   • Canada will also toughen our border measures to combat foreign steel dumping and verify compliance with applicable surtaxes. To do so, we will equip the Canada Border Services Agency with a dedicated steel compliance team, enhanced detection of false declarations, and expanded an online reporting tool.
   • To move away from relying on imported steel and to give Canadian companies time to adjust their supply chains to use Canadian steel, the temporary remission of Canadian tariffs on imports will end on January 31, 2026, for steel used in Canada for manufacturing, food and beverage packaging, and agricultural production.
   • These measures will boost the competitiveness of Canadian steel producers by protecting them against trade diversion. They will also unlock over $1 billion in new domestic demand for Canadian steel.
      
2. Make it easier to build with Canadian steel and Canadian lumber
   • To make it more affordable to transport Canadian steel and lumber across the country, Canada will work with railway companies to cut freight rates for transporting Canadian steel and lumber interprovincially by 50%, beginning in Spring 2026.
   • To maximise the use of Canadian softwood lumber in housing, Build Canada Homes will prioritise shovel-ready, multi-year projects that can begin within 12 months and that use Canadian wood products.
   • With a funding allocation of roughly $700 million next year, Build Canada Homes – our new federal homebuilding agency – alone will create $70 to $140 million of new demand for Canadian wood products – and attract private and provincial capital to multiply its impact.
   • Finally, Canada’s new government will implement our Buy Canadian Policy later this year, which requires that all contracts worth over $25 million prioritise Canadian materials – including steel and lumber. This will also apply across federal grants and contributions programs.
      
3. Increase protections for Canadian steel and lumber workers and businesses so they can adapt and thrive in this new global landscape
   • Canada will earmark more than $100 million over two years, starting in 2025-2026, in program costs to provide support to eligible employers in all sectors with an active Work-Sharing agreement and who commit to supporting training for employees working reduced hours. This measure will increase the income replacement for eligible workers, helping up to 26,000 Canadian workers in various sectors, including steel and lumber.
   • To ensure companies have the financing and credit support they need to maintain and restructure their operations during this period of transformation, Canada will provide an additional $500 million to the Business Development Bank of Canada (BDC) Softwood Lumber Guarantee Program.
   • To support softwood lumber firms facing liquidity pressures, Canada will earmark $500 million in funding under the Large Enterprise Tariff Loan facility.
   • To make it easier for the forestry sector to access federal support, we will establish a single window to applications – a one-stop shop to help companies navigate our suite of support programs.
   • To examine and report on how the forest industry can maintain its competitiveness over the long-term, Canada will launch a Canadian Forest Sector Transformation Task Force. This Task Force will seek input and recommendations from provinces, territories, and industry on managing the sector’s transformation.

At this critical moment in Canada’s history, we are moving from reliance to resilience. Using Canadian steel and Canadian lumber, we will build Canada strong.

Quotes

“Steel and lumber are core to Canada’s competitiveness. To compete and win in this new global environment, these strategic sectors must be ready to seize new markets at home and around the world. Canada’s new government is moving with urgency and determination to transform these industries and empower workers and businesses with the tools they need to bridge to the future – and thrive in it.”

The Rt. Hon. Mark Carney, Prime Minister of Canada

“Canada relies on strong steel and lumber sectors, and so do Canadians across the country. Supporting these industries is about protecting good jobs, strengthening communities, and reinforcing our made-in-Canada industrial capacity. With the actions announced today, along with existing supports, we’re committed to keeping these key industries strong and backing the workers who power them.”

The Hon. François-Philippe Champagne, Minister of Finance and National Revenue

“Workers are the backbone of a strong Canada. In the face of tariffs and uncertainty around the world, we are ensuring workers and businesses can prosper today, and lead in tomorrow’s economy. We are building the foundations for a stronger country and a stronger future."

The Hon. Patty Hajdu, Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario

“Steel and lumber are critical to Canada’s supply chains, from homebuilding to major infrastructure. As tariffs threaten to disrupt these sectors, our government is stepping up to help producers stay competitive in the short and long-term and keep Canadians working. We’re committed to ensuring Canadian materials remain the trusted choice here at home and with our partners abroad.”

The Hon. Tim Hodgson, Minister of Energy and Natural Resources

“We are building a stronger, more resilient economy by standing behind our steel and softwood lumber industries. The new measures announced today, combined with continued federal investments, will protect workers, safeguard our industries affected by international tariffs, and ensure companies have the tools and financing they need to keep operating, growing, and strengthening our supply chains.”

The Hon. Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions

“Federal procurement is a powerful tool to support Canadian industries. Through the Buy Canadian Policy, we are prioritising Canadian materials in government projects, backing companies that are modernising, investing in new technologies, and creating good jobs that sustain local economies and support families across the country. This approach ensures public investment helps workers, businesses, and communities thrive, while positioning Canada for long-term growth and competitiveness.”

The Hon. Joël Lightbound, Minister of Government Transformation, Public Works and Procurement

Quick facts

• Earlier this year, in July, August, and September, Canada’s new government announced a series of new, strategic measures for workers and businesses in the sectors most impacted by U.S. tariffs and trade disruptions.
• The Canadian government has received close to 1,500 applications from companies across the steel and aluminum, lumber, manufacturing, automotive, and seafood sectors through the Regional Tariff Response Initiative. In the steel sector alone, more than 230 firms have applied, and support is already being delivered at a rapid pace.
• With targeted funding, Canadian companies are integrating new technologies, launching new products to diversify markets, securing roles in domestic supply chains, and through these upgrades, enabling participation in trade worldwide.
• These investments are already protecting workers – providing relief to nearly 37,000 Canadians during this period of uncertainty. So far, they have prevented more than 14,000 Canadians from losing their jobs.
• More broadly, across our economy, employment is rebounding after the early impacts of the trade war, with 120,000 total jobs created since March.

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