Speaking from a steel plant in Hamilton, Ontario, Carney emphasized that Canada would no longer serve as a backdoor entry point for foreign steel dodging U.S. trade barriers. The new rules limit imports from non-free-trade partners to half of their 2024 volumes, while even trade-deal partners (excluding the U.S. and Mexico) face similar caps. The changes also include a 25% tariff on steel from any country if the product contains Chinese-melted steel.

Carney justified the measures as part of a broader effort to “diversify trade relationships” and strengthen Canadian industrial resilience. He noted that two-thirds of Canada’s steel consumption comes from abroad, compared to one-third in the U.S. and just one-sixth in Europe.

Trade Tensions Rise As U.S. Deadline Looms

The announcement comes amid ongoing trade disputes with the United States. President Trump’s administration has imposed a 50% tariff on Canadian steel, as well as on aluminum and assembled vehicles. Canada is currently in talks to resolve the row, but Carney warned that any deal “must work for Canadian workers” and should not enshrine permanent imbalances.

The Canadian Steel Producers Association praised the government’s action, calling it a long-overdue response to unfair practices and global overcapacity. Association head Catherine Cobden said the new tariffs marked “a much better place than we were yesterday,” especially in addressing Chinese supply routes.