New Measures Against Canadian Steel Imports

The Canadian Government announced on November 26, 2025, that new protective measures have been implemented in addition to the previously announced measures targeting the steel and softwood lumber sectors.

The regulations in question aim to increase the share of Canadian steel producers in the domestic market and to more strictly limit imports of foreign steel.
The main decisions taken in this context are summarized below:
• Canada will make the tariff rate quota (TRQ) applied to steel products imported from countries with which it does not have a free trade agreement more restrictive by reducing it from 50% of the 2024 level to 20%.
• For steel imports from free trade agreement partner countries outside CUSMA (Canada–US–Mexico Agreement), the tariff rate quota will be reduced from 100% of the 2024 level to 75%.
• An additional 25% tariff will be applied to steel-derived goods such as wind turbine towers, prefabricated structures, fasteners, and wire products, covering all countries.
• Border controls will be strengthened to combat dumping and misdeclaration in imported steel; inspections will be increased by establishing a special “steel compliance team” within the Canada Border Services Agency.
• The temporary tariff exemption applicable to imported steel used in manufacturing, food and beverage packaging, and agricultural production will end on January 31, 2026. After this date, tariffs will be reimposed on imported steel in the relevant sectors to encourage the use of domestic steel.
The Canadian Government anticipates that these measures will generate over 1 billion US dollars in additional domestic demand for Canadian-origin steel.

Additionally, the following supportive measures will be taken to increase the use of Canadian steel and lumber:
• To encourage the interprovincial transport of Canadian steel and lumber, freight rates will be reduced by 50% in collaboration with railway companies, with implementation expected to begin in Spring 2026.
• The newly established federal housing agency, Build Canada Homes, will give priority to housing projects that use Canadian-sourced wood products.
• Through the Build Canada Homes agency, which plans to allocate approximately US$700 million in funding next year, the goal is to generate an additional US$70–140 million in demand for Canadian wood products.
• In addition, the Buy Canadian Policy, which requires all public procurement contracts worth over US$25 million to give priority to Canadian-made products, including steel and lumber, is scheduled to come into effect by the end of the year.
• Various incentive packages, including credit, financing, and training support, have also been announced to financially support companies operating in the steel and lumber sectors and to protect employment.

These announced measures are expected to have a negative impact on Turkey's exports of steel and steel-derived products to Canada. According to data from Statistics Canada, Turkey's iron and steel exports to Canada amounted to approximately US$341 million last year and approximately US$74 million in the first eight months of 2025. Exports of steel derivative products amounted to approximately US$92 million last year and US$67 million in the first eight months of 2025.
The full text of the official statement published by the Office of the Prime Minister of Canada can be accessed via the relevant source.

Source:
https://www.pm.gc.ca/en/news/news-releases/2025/11/26/prime-minister-carney-announces-new-measures-protect-and-transform