The new plan was announced amid stalled trade negotiations between Ottawa and Washington.
Published November 26, 2025
Canada will provide further support to help the steel and timber industries cope with U.S. tariffs and create domestic markets, as well as strengthen protections for steel and timber workers.
Prime Minister Mark Carney outlined the new plan at a press conference on Wednesday.
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Carney announced that Ottawa will reduce steel import quotas from countries that don’t have free trade agreements with Canada from 50% to 20% of 2024 levels.
Countries with free trade agreements (FTAs) with Canada will see their quotas reduced from 100% to 75% of 2024 levels. This does not include the United States and Mexico, which are bound by the United States-Canada-Mexico Free Trade Agreement.
Canada will also impose a 25% global tariff on eligible imported steel derivatives and include border measures to combat steel dumping.
In July, Ottawa set import quotas for steel from non-FTA countries at 50% of 2024 levels to prevent dumping of foreign steel into Canada.
Government officials say measures are being stepped up to open up the domestic market for Canadian steel.
The steel industry contributes more than C$4 billion ($2.8 billion) to Canada’s gross domestic product (GDP) and directly employs more than 23,000 people. But it is one of the two sectors hardest hit by US President Donald Trump’s 50% tariff on Canadian steel imports.
President Trump has imposed a 50% tariff on steel, and softwood lumber, which has long been subject to U.S. tariffs, now faces a 45% tariff after the Trump administration raised tariffs last month.
Carney said the decades-long process of building ever-closer economic ties between Canada and the United States is over.
“As a result, many of our strengths have become vulnerabilities. Last year, more than 75 percent of our exports went to the United States. 90 percent of our timber exports, 90 percent of our aluminum exports, and 90 percent of our steel exports all went to the single market,” Carney said.
The City of Ottawa will work with rail companies to reduce interprovincial shipping rates for Canadian steel and timber by 50% starting in early 2026.
“By lowering freight rates, we will make it more affordable to transport Canadian steel and timber across the country,” Carney said.
The government also said it would support the use of locally sourced steel and timber in home construction, as well as provide financial support to businesses dealing with tariff-related impacts, including the impact on employees, liquidity pressures and business restructuring.
President Trump’s tension
President Trump ended trade talks with Canada last month after the Ontario government ran a TV ad in the U.S. market criticizing Trump’s tariffs, citing a speech by former U.S. President Ronald Reagan.
Carney said he will be in Washington for the final draw for the 2026 FIFA World Cup competition to be held on December 5th. He said he would speak to President Trump at that time and said he spoke briefly with the president on Tuesday.
“If the United States wants to rejoin, we are ready to rejoin the talks,” Carney said.
Secretary Carney’s announcement comes amid increased pressure on U.S. companies reeling from President Trump’s tariffs.
John Deere tractor maker Deere & Co. said Wednesday it expects to be hit even harder by the tariffs in 2026. The company expects pre-tax tariffs to be approximately $1.2 billion in fiscal 2026, compared to approximately $600 million in 2025.
