November 26,2025
RED FM News Desk
Amid an ongoing trade dispute with the United States, Prime Minister Mark Carney has unveiled a series of new measures designed to support and safeguard Canada’s steel and lumber industries.
One of the key steps involves sharply reducing foreign steel imports from countries that do not have a free trade agreement with Canada — lowering the cap from 50% to 20% of 2024 levels — a move largely aimed at curbing imports of Chinese steel.
The government will also cut quotas for free-trade-partner countries (excluding the U.S. and Mexico) from 100% to 75% of 2024 levels, and introduce a global 25% tariff on select imported steel-based products.
Carney announced the measures in Ottawa on Wednesday, as trade negotiations with Washington remain stalled following the controversy over Ontario’s anti-tariff advertisement last month. Ottawa will also slash freight rates for shipping steel and lumber across Canada by half, beginning next spring.
Government officials told reporters earlier Wednesday that the freight measure is expected to cost $146 million, based on prior estimates.
Additional initiatives include the rollout of the Buy Canadian Policy later this year, requiring defence and construction contracts to prioritize domestically sourced materials such as steel and aluminum. The government will also increase funding for the previously announced Softwood Lumber Development Program by $500 million, bringing its total to $1.2 billion in available government-backed loans.
No new support was announced for the aluminum sector.
The U.S., for its part, raised tariffs on imported steel and aluminum to 50% in June, and added a further 10% tariff on softwood lumber in October, pushing those rates from 35% to 45%. Several furniture and kitchen cabinet products are also subject to 25% tariffs.
Canada has responded with 25% counter-tariffs on U.S.-origin steel and aluminum. Earlier this year, Canada also cut import quotas on steel from non-free-trade countries from 100% to 50% and imposed a 25% surtax on steel and aluminum products from China — Canada’s second-largest source of steel imports.
Asked whether he was concerned about possible retaliation from China — especially as the two countries attempt to recalibrate their relationship — Carney said that discussions with Beijing “will continue.”
Carney also confirmed that he spoke with President Trump on Tuesday and plans to travel to Washington on Dec. 5 for the FIFA World Cup draw, where he may encounter the U.S. president. When asked whether he would raise the issue of restarting trade talks, Carney responded, “I’ll bring up with him what I bring up with him when I see him.”
“These are points I do make to him. My exchange with the President yesterday was not newsworthy,” he added.
Carney had previously sidestepped questions at the G20 summit in South Africa about when he last spoke with Trump, responding “who cares?” — a remark he acknowledged on Tuesday was a “mistake” and a “poor choice of words.”
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