Canada Unveils Major Measures to Protect and Transform Steel and Lumber Industries
Canada steel and lumber measures aim to protect domestic industries, boost jobs, and strengthen supply chains as Ottawa responds to global trade disruptions.
OTTAWA — The federal government has announced a sweeping package of new measures aimed at transforming Canada’s steel and softwood lumber industries, responding to global trade volatility and ongoing U.S. tariffs with what officials describe as the most significant industrial shift in a generation.
Prime Minister Mark Carney said the changes are central to Canada’s broader strategy to move “from reliance to resilience,” as the global economy undergoes rapid and destabilizing realignments. The measures include new import limits, strengthened border enforcement, targeted worker supports, domestic freight reductions, and a Buy Canadian procurement policy set to take effect later this year.
The reforms build on a series of federal interventions made earlier this year to assist sectors most affected by U.S. tariffs and global trade disruptions, including steel, aluminum, lumber, manufacturing, automotive, and seafood.
Stricter Import Limits and New Tariffs on Steel
To protect domestic producers from diversion and dumping, the federal government will sharply reduce tariff rate quota (TRQ) levels for steel imports:
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From non-free trade partners, TRQs will drop from 50% to 20% of 2024 levels.
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From FTAs outside CUSMA, TRQs will decrease from 100% to 75% of 2024 levels.
Canada will also impose a global 25% tariff on several steel-derivative products, including wind towers, prefabricated buildings, fasteners, and wire.
The Canada Border Services Agency will receive a dedicated steel compliance team, enhanced anti-dumping verification tools, and an expanded online reporting portal.
Temporary tariff remissions for imported steel used in manufacturing, packaging, and agriculture will end January 31, 2026, encouraging firms to shift to Canadian-made steel.
These combined measures are expected to generate over $1 billion in new domestic demand for Canadian steel.
Canadian industries and workers are still feeling the impacts of tariffs.
We’re focused on what we can control — introducing new measures to lower imports of foreign steel, making it easier to buy and build with Canadian steel and lumber, and investing more in our workers and…
— Mark Carney (@MarkJCarney) November 26, 2025
Reducing Interprovincial Freight Costs for Steel and Lumber
Beginning Spring 2026, the federal government says it will work with railways to cut freight rates for transporting Canadian-produced steel and lumber by 50%, lowering costs for builders and manufacturers nationwide.
To expand domestic wood use, Build Canada Homes — the new federal homebuilding agency — will prioritize shovel-ready housing projects that use Canadian lumber. With an estimated $700 million in funding next year, the agency alone is expected to generate $70–$140 million in new demand for Canadian wood products.
A new Buy Canadian Policy will require all federal contracts over $25 million to prioritize Canadian materials, including steel and lumber, extending this requirement to federal grants and contributions programs.
Supports for Workers and Businesses Facing Volatility
To help companies preserve jobs during market disruptions, the federal government will provide over $100 million over two years to employers with Work-Sharing agreements that support worker training during reduced hours. Up to 26,000 workers are expected to benefit.
New credit supports include:
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$500 million for the Business Development Bank of Canada’s Softwood Lumber Guarantee Program
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$500 million through the Large Enterprise Tariff Loan facility for firms facing liquidity pressures
In the forestry sector, Ottawa will create a single-window application system to streamline access to federal programs. A new Canadian Forest Sector Transformation Task Force will study long-term competitiveness and report recommendations to the government.
Federal Ministers Emphasize Strategic Importance
The announcement included several statements from senior members of cabinet:
Prime Minister Mark Carney called the sectors “core to Canada’s competitiveness,” stating the 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.”
Finance Minister François-Philippe Champagne said supporting steel and lumber is “about protecting good jobs, strengthening communities, and reinforcing our made-in-Canada industrial capacity.”
Jobs and Families Minister Patty Hajdu noted that “workers are the backbone of a strong Canada,” emphasizing the government’s aim to ensure prosperity today while preparing industries to lead in the future economy.
Energy and Natural Resources Minister Tim Hodgson underscored the role of steel and lumber in supply chains, including housing and major infrastructure, while Industry Minister Mélanie Joly stressed the importance of keeping companies competitive amid tariffs.
Public Works Minister Joël Lightbound highlighted the new procurement requirements, stating that prioritizing Canadian materials will support companies investing in modernization and new technologies.
Earlier Interventions Already Stabilizing Jobs
The federal government says nearly 1,500 companies have applied for support under the Regional Tariff Response Initiative, including 230 firms in the steel sector. Funding is already helping companies modernize production lines, diversify markets, and strengthen supply chain roles.
Ottawa reports that support delivered so far has protected 37,000 jobs, preventing more than 14,000 layoffs during the early phases of the trade disruption.
A Transforming Economic Landscape
The announcement comes as Canada navigates what the Prime Minister has described as a new global economic era marked by geopolitical shocks, rising protectionism, and urgent climate-related demands on supply chains.
“With these measures,” the government stated, “Canada is building the foundations for a stronger, more self-reliant industrial base.”
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