Canadian Prime Minister Mark Carney announced on Thursday that Canada will adjust its retaliatory tariffs on U.S. steel and aluminum products starting July 21. This revised tariff schedule is aligned with the ongoing trade discussions with the United States and will be implemented just as the 30-day deadline for negotiations—set during the G7 summit by U.S. and Canadian leaders—expires.
In addition to modifying tariffs, the Canadian government has outlined two further measures to counteract U.S. actions. First, by June 30, new federal procurement regulations will come into effect, prioritizing purchases from Canadian suppliers and “reliable trade partners.” Second, a retrospective tariff quota, set at a 100% rate based on 2024 benchmarks, will be applied to steel imports from countries without a free trade agreement with Canada. Officials indicate that more tariff measures are expected to be announced in the coming weeks to address what they describe as “unfair trade practices that have intensified due to U.S. actions” impacting the steel and aluminum sectors.
Additionally, Ottawa has set up two special task forces—one each for the steel and aluminum industries—to closely monitor trade patterns and provide guidance for government decision-making.
This series of policy adjustments comes as Canada’s metal industry continues to weather the effects of increased tariffs by the United States. Earlier in June, President Trump raised existing metal tariffs from 25% to 50%, citing the need to “protect American workers from the effects of unfair trade and global overcapacity.” In response, Canada swiftly imposed a 25% countermeasure tariff on U.S. products.
Negotiations between the two countries have since been complicated by U.S. demands related to a proposed “Golden Dome” missile defense initiative. Trump insisted that Canada cover a substantial share of the plan’s $71 billion costs, a proposal that has left Ottawa weighing its options on whether to participate or propose alternatives.
The Canadian steel industry has not been spared. Catherine Cobden, CEO of the Canadian Steel Producers Association, noted escalating layoffs, reduced investment, and slower freight movement since the onset of the U.S. tariffs. According to Cobden, the sustained 50% tariff has effectively barred access to the U.S. market for Canadian steel—leaving billions of dollars’ worth of products unsold. Ontario Premier Doug Ford has even called for an additional 25% retaliatory tariff against American imports, though Federal Industry Minister Melanie Joly promised a measured approach in devising Canada’s response.
Amid these developments, Keanin Loomis, president of the Canadian Institute of Steel Construction, revealed that while American tariffs have curtailed Canadian metal exports to the U.S., they have inadvertently opened the door for subsidized steel from Asia to enter the Canadian market. Loomis explained that this influx of unfairly traded steel has significantly impacted domestic producers, as the penalized steel is now looking for new markets, with Canada being the natural alternative. The upcoming tariff adjustments are part of a broader strategy to combat the chaotic effects of global overcapacity.
Prime Minister Carney stressed that while advancing negotiations remains a priority, it is equally critical to reinforce the domestic industrial base. The new measures are designed not only to protect Canadian workers and businesses from what is seen as U.S. tariff injustice but also to maintain a cooperative relationship with the United States in the steel sector, despite the tightening trade environment.
