March 22, 2025 – Ottawa, Ontario – Department of Finance Canada

Canadian steel producers and workers are facing potential harm from the threat of increased steel imports into Canada, triggered by the unjustified 25 per cent tariffs the United States (U.S.) imposed on steel products from all countries.

Today, the Honourable François-Philippe Champagne, Minister of Finance and the Honourable Anita Anand, Minister of Innovation, Science and Industry announced the launch of a 30-day public consultation on possible trade measures to protect against the threat of diversion of steel products from third countries into the Canadian market as a result of the recent trade measures by the U.S.

The global steel market currently has too much supply compared to demand. This severe overcapacity leads to cheap foreign steel being sold at artificially low prices in Canada and globally. When such steel enters the Canadian market, it negatively impacts Canadian steel workers and businesses. Following recent U.S. tariffs, there is a heightened risk that these steel products may flood the Canadian market putting both producers and workers at risk. 

Potential new trade measures would complement measures recently announced by the Government of Canada to support Canadian steel and aluminum workers and industries. As a first response to the direct threat posed by U.S. tariffs, Canada imposed 25 per cent reciprocal tariffs, effective March 13, 2025, on a list of steel products worth $12.6 billion and aluminum products worth $3 billion, as well as on additional imported U.S. goods worth $14.2 billion, for a total of $29.8 billion. 

The federal government also applied a 25 per cent surtax on imports of steel and aluminum products from China, effective October 22, 2024. This measure was taken in response to China’s non-market policies and practices and to prevent trade diversion resulting from actions taken by Canadian trading partners. 

Beyond these recent actions, Canada also maintains robust trade remedy and import monitoring systems to help protect against unfair trade from all sources and provides direct recourse for Canadian businesses and workers that are harmed by unfairly traded goods entering the Canadian market.

The federal government continues to monitor the trade situation closely and will take additional steps as needed to support our industries against these threats.