Canada's new government has a mandate to build the strongest economy in the G7. While the government negotiates a new economic and security partnership with the United States, we will ensure workers and industry are protected against the unjust and unprovoked American tariffs. Today, the Minister of Finance and National Revenue, the Honourable François-Philippe Champagne, announced a series of measures to protect Canadian steel and aluminum producers and workers.
The government will take these measures to bolster its response:
- First, Canada will adjust its existing counter-tariffs on steel and aluminium products on july 21, to levels consistent with progress that has been made in the broader trading arrangement with the United States.
- Second, effective June 30, the government will begin implementation of reciprocal procurement policies to limit access to federal procurements to suppliers from Canada and from our reliable trading partners that provide reciprocal access to suppliers from Canada through trade agreements. As shared earlier this year, the government is also exploring additional ways to maximize the use of Canadian steel and aluminum in government-funded projects, including in coordination with Canadian provinces and territories.
- Third, the government will protect Canada's steel industry by establishing new tariff rate quotas of 100 per cent of 2024 levels on imports of steel products from non-free trade agreement partners to stabilize the domestic market and prevent harmful trade diversion as the result of the U.S. actions that are destabilizing markets. These quotas will be applied retroactively and will be reviewed in 30 days.
- Fourth, the government will adopt additional tariff measures over the coming weeks to address risks associated with persistent global overcapacity and unfair trade in the steel and aluminum sectors, which are exacerbated by U.S. actions. Measures will be applied on the basis of "country of melt and pour" for steel and "country of smelt and cast" for aluminum.
- Fifth, the government will immediately create two government-stakeholder task forces, one for steel and one for aluminum. These committees will meet regularly to closely monitor trade and market trends to support government decision making - to better support our industries and workers.
- Finally, the new $10 billion Large Enterprise Tariff Loan facility remains open to applicants. This program supports eligible large businesses that are facing difficulties in accessing traditional sources of market financing by providing access to liquidity. This will help employers that were viable before the recent U.S. trade actions sustain their operations and return to financial resilience as the market stabilizes.
The government remains prepared to take additional steps as needed and will continue to review the appropriateness of its response, pending developments with U.S. tariffs. The federal government will continue to work closely with provinces and territories to ensure their input and regional interests are reflected in its response to the U.S. tariffs.
A remission process is in place to give businesses time to adjust their supply chains, with remissions currently granted under narrow, time-limited conditions to ensure a targeted and balanced approach. Additional individual requests are expected to be approved in the coming days. The Government of Canada will also review its remission framework to favour the use of Canadian steel and aluminum in Canadian-made products.
As the government defines a new economic and security relationship with the United States, it will defend the interests of Canadians, safeguard Canada's workers and businesses, and build one Canadian economy - the strongest economy in the G7.
