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Economic Times
an hour ago
- Business
- Economic Times
‘All our exports have stopped': Canadian steel industry amid US tariffs
Canada warns steel sector needs urgent support to survive as U.S. tariffs choke exports; 'Basically all our exports have stopped,' says industry official Canada's federal government is stepping up efforts to shield its embattled steel sector as new US tariffs throttle exports and stoke economic uncertainty. Industry Minister Mélanie Joly warned this week that without direct government support, the Canadian steel industry may not be able to survive. 'Survival, and I think eventually, much more than that, the fact that they can thrive,' Joly said Thursday(July 17) on The Vassy Kapelos Show, as she outlined the urgent need for intervention. Joly also says the government is considering broader steps, including the use of Canadian steel in shipbuilding, defence procurement, and major infrastructure projects. 'We need to support them as we're creating a much more domestic market for them,' she said. Beyond economics, Joly framed steel as a national security issue, noting Canada's commitment to meeting NATO defence spending targets. Since March, the United States has imposed steep duties on Canadian steel and aluminum, starting with a 25 percent tariff that doubled to 50 percent in June under an executive order from President Donald Trump. According to François Desmarais of the Canadian Steel Producers Association, steel shipments to the US have plummeted by 25 percent, with nearly 1,000 Canadian jobs lost in March alone.'Basically, all our exports to the US have stopped,' Desmarais said in a separate interview on workers like Mike Tremblay, who has spent 22 years at a Hamilton steel plant, the anxiety is growing. 'People are scared. I've got two kids in university and a mortgage. If this keeps going, I don't know what happens next,' he told CBC News. In a bid to stabilize the sector, Prime Minister Mark Carney announced new measures Wednesday, including fresh tariffs on steel originating in China and adjusted import quotas. The move, aimed at countering foreign dumping and strengthening domestic production, was welcomed by labor United Steelworkers union called it a 'major win for workers,' citing the changes to tariff-rate quotas as key to preventing job concerns remain. 'Diversifying the domestic market is important, but it won't replace US demand,' said Desmarais, warning that global overcapacity still poses a trade talks with Washington remain tense. While Prime Minister Carney and President Trump had initially aimed to reach a new Canada-US economic agreement by July 21, that deadline has now been pushed to August 1. Trump is threatening additional tariffs of 35 percent on Canadian imports, though a White House official told CTV News these would not apply to goods compliant with the Canada-US-Mexico Agreement (CUSMA).Pressed on whether the federal government will compromise to avoid further economic harm, Joly said Ottawa won't bargain in public. 'We will make sure that we don't negotiate in public,' she said. 'It is important that we stand strong. It is important that we defend Canada and Canadians' interests.'
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First Post
18 hours ago
- Business
- First Post
Trump impact on Canada: Carney gears up to block steel imports from China
Canadian PM Carney has announced new steps to limit the flow of cheap foreign steel into Canada, aiming to protect local producers hit by US tariffs, emphasising that stricter import quotas and higher tariffs will be introduced by the end of the month read more Prime Minister Mark Carney promised to further crack down on the amount of cheap, foreign steel entering the Canadian market by the end of the month, as the domestic industry continues to be clobbered by US President Donald Trump's tariffs. Carney made the announcement in Hamilton on Wednesday morning, eliciting a sigh of relief from an industry that has already seen layoffs and lower production levels in the weeks since the US imposed steep import taxes. STORY CONTINUES BELOW THIS AD In June, the government announced changes to the tariff quota system, which allows a set level of product to enter Canada at a lower tariff rate, by limiting steel imports from countries that don't have free trade agreements to 2024 import levels. But those quotas were criticized by the industry as still being too high. Canadian steelmakers have long alleged that foreign companies are supplying steel to the Canadian market at ultra-low prices, a practice commonly known as dumping, making it hard for them to compete. Carney said the quota changes 'will ensure Canadian steel producers have a bigger share of the Canadian market.' Steel products from non-free trade agreement partners, which include China and Turkey, will see their tariff rate quota tighten to half of 2024 volumes. A 50 per cent tariff will be imposed on any imports beyond those levels, Carney said. Ottawa is also moving to clamp down on steel from partners who do have free trade agreements with Canada, other than the U.S. and Mexico. The federal government said a 50 per cent tariff will apply to imports surpassing 2024 volumes. Carney said Canada will implement additional tariffs of 25 per cent on imports from all non-US countries containing steel melted and poured in China. STORY CONTINUES BELOW THIS AD 'Imports supply almost two-thirds of current Canadian consumption of steel, compared to less than one-third for the United States and less than one-sixth for the European Union,' Carney said. Existing arrangements with the Canada-US-Mexico Agreement (CUSMA) will remain the same, he said. Carney announced no changes to US counter-tariffs as the two countries work toward their Aug. 1 deadline. Catherine Cobden, president and CEO of the Canadian Steel Producers Association, said she listened to the announcement 'with relief.' 'It's certainly a much better place than where we were yesterday,' she said of the quota changes.
Yahoo
a day ago
- Business
- Yahoo
Carney promises to curb non-U.S. steel imports as domestic industry sends out distress signals
Prime Minister Mark Carney promised to further crack down on the amount of cheap, foreign steel entering the Canadian market by the end of the month, as the domestic industry continues to be clobbered by U.S. President Donald Trump's tariffs. Carney made the announcement in Hamilton on Wednesday morning, eliciting a sigh of relief from an industry that has already seen layoffs and lower production levels in the weeks since the U.S. imposed steep import taxes. In June, the government announced changes to the tariff quota system, which allows a set level of product to enter Canada at a lower tariff rate, by limiting steel imports from countries that don't have free trade agreements to 2024 import levels. But that quota was criticized by the industry as still being too high. Canadian steelmakers have long alleged that foreign companies are supplying steel to the Canadian market at ultra-low prices, a practice commonly known as dumping, making it hard for them to compete. WATCH | Carney says Canada's steel industry needs to be protected: Carney said the quota changes "will ensure Canadian steel producers have a bigger share of the Canadian market." Steel products from non-free trade agreement partners, which include China and Turkey, will see the tariff rate quota level tighten to half of 2024 volumes. A 50 per cent tariff will be imposed on any imports beyond those levels, Carney said. Ottawa is also moving to clamp down on steel products from non-U.S. partners who do have free trade agreements with Canada. The federal government said a 50 per cent tariff will apply to imports surpassing 2024 volumes. Carney said Canada will implement additional tariffs of 25 per cent on imports from all non-U.S. countries containing steel melted and poured in China. "Imports supply almost two-thirds of current Canadian consumption of steel, compared to less than one-third for the United States and less than one-sixth for the European Union," Carney said. Existing arrangements with the Canada-U.S.-Mexico Agreement (CUSMA) will remain the same, he said. Carney announced no changes to U.S. counter-tariffs as the two countries work toward their Aug. 1 deadline. Steel association happy with changes Catherine Cobden, president and CEO of the Canadian Steel Producers Association, said she listened to the announcement "with relief." "It's certainly a much better place than where we were yesterday," she said of the quota changes. She said the new caps will help Canadian steelmakers "recapture domestic market." "I can't sit here and tell you that it will completely offset the loss from the United States, but it will help us," Cobden said. The industry has been hobbled after Trump first imposed 25 per cent tariffs on the Canadian steel and aluminum sectors in March, citing national security concerns. He hiked the tariffs to 50 per cent in June. Cobden said there was a 30 per cent drop in steel production in May. Her group is bracing for a further plummet once the numbers reflecting the 50 per cent tariff are available. Carney also announced further investments in Canadian steel companies, including $70 million to provide training and income support for up to 10,000 affected steel workers and $1 billion through the Strategic Innovation Fund (SIF) to help steel companies advance projects. The prime minister said Canada's new government will prioritize Canadian steel to build projects including "millions of homes, ports, bridges, energy infrastructure and our security and defence capabilities." To do that, Carney said changes are coming to the procurement process requiring companies contracting with the federal government to source Canadian steel for government contracts. Carney says deal without some tariffs is unlikely Carney's announcement comes a day after he suggested Canadians may have to accept some tariffs as part of a new agreement with the United States. He did not say how the government will respond if current tariffs remain in place after the Aug. 1 deadline. Cobden, the steel association head, said her industry is "not interested in a baseline tariff." WATCH | Carney expects tariffs to be part of trade deal: Bloc Québécois Leader Yves-François Blanchet accused Carney of backpedalling. "He has renounced and made compromises on many things so far without achieving anything in the delays he himself has created and announced," he told reporters on Parliament Hill Wednesday. "He should never have said he will restore the full free trade agreement; he should not have said that because now he has to admit his own failure." WATCH | Carney 'has to admit his own failure,' Blanchet says: Conservative Leader Pierre Poilievre said Tuesday Carney's tariff remarks were "another unilateral concession from a man who said he would never back down to the U.S. president." Poilievre was also critical of Carney's decision late last month to scrap the digital services tax (DST) — a move Trump demanded to continue trade negotiations. The Conservative accused Carney of putting his "elbows down" by cancelling the tax targeting large technology firms "at the 11th hour."
Cision Canada
a day ago
- Business
- Cision Canada
PacifiCan investment to boost trade and export success for B.C. businesses
Minister Robertson announces $2.5M investment for companies across B.C., highlighting PacifiCan's impact across the Southern Interior KELOWNA, BC, July 16, 2025 /CNW/ - As one of Canada's fastest-growing cities, Kelowna, a regional hub in B.C.'s interior, is powered by a diverse economy, a thriving tech sector, and a strong spirit of entrepreneurship. PacifiCan has offices across the province, including Kelowna, supporting the entrepreneurs and innovators driving B.C.'s future. Since 2021, PacifiCan has invested over $47M in 156 projects across the Southern Interior, with over $28M in 65 projects specifically in Kelowna and nearby communities in the Thompson-Okanagan. These investments are fueling key sectors like tech, tourism, and manufacturing – creating well-paying jobs, and helping the region remain a hub of innovation and opportunity. Today, the Honourable Gregor Robertson, Minister of Housing and Infrastructure and Minister responsible for Pacific Economic Development Canada (PacifiCan), announced an investment of $2.5M to help businesses in Kelowna and throughout B.C. find opportunities for growth in new markets and manage the impacts of tariffs. Through this investment, $1.2 million will allow Community Futures British Columbia (CFBC) to continue delivering the Export Navigator program, which helps B.C. businesses become export-ready. Export Navigator pairs businesses with expert advisors in regions across the province who provide personalized guidance to help them achieve their export goals. To date, Export Navigator has helped more than 1,200 businesses begin their export journey, including 280 businesses in the Thompson-Okanagan alone. This initiative also received $1.2 million from the Province of B.C. The remaining $1.3 million of PacifiCan investment will help CFBC and the Greater Vancouver Board of Trade (GVBOT) support B.C. businesses as they adjust to a changing economy and meet requirements of the Canada-U.S.-Mexico Agreement (CUSMA) through two specialized initiatives: $900,000 for CFBC to launch the CUSMA Compliance Advisory Services Initiative (CCASI), delivered through Export Navigator. This initiative will provide expert advisory services and up to $5,000 to help businesses cover the costs of becoming CUSMA compliant. $380,500 for GVBOT to deliver a series of webinars and in-person workshops in six B.C. communities. These sessions will connect businesses with experts, including customs brokers, lawyers and other professionals, who will provide valuable guidance on CUSMA compliance. As the Government of Canada works towards building one Canadian economy, PacifiCan will continue helping businesses across B.C. remove barriers and unlock new trade opportunities. Quotes "British Columbia is home to a powerful ecosystem of innovators and entrepreneurs, including right here in Kelowna. As the global economy evolves, it is essential that British Columbians have the tools they need to succeed. With this investment, PacifiCan is empowering local businesses to tap into new markets, adapt to a changing economy, and thrive in one Canadian economy." -The Honourable Gregor Robertson, Minister of Housing and Infrastructure and Minister responsible for Pacific Economic Development Canada "Our Export Navigator program is boosting regional economies and creating new jobs by helping B.C. businesses to expand into markets across Canada and around the world. Together with PacifiCan's timely and far-reaching investments across B.C., we are helping to grow the number and diversity of exporters in the province – key goals in B.C.'s Trade Diversification Strategy – as we navigate the current geopolitical challenges." -The Honourable Diana Gibson, Minister of Jobs, Economic Development and Innovation, Province of BC "We're grateful for the meaningful support offered by PacifiCan, which allows Export Navigator to continue helping B.C. businesses succeed in new markets. This important funding to CFBC ensures Export Navigator's ability to provide support for businesses throughout communities in urban and rural British Columbia. CUSMA compliance is a key factor for businesses navigating trade with our US partners. Additional funding for the CUSMA Compliance Advisory Services Initiative will assist businesses to access trade consultants and specialists, helping guide them through the complex world of trade." -Kath Britton, Director of Program Operations, Export Navigator "Trade rules and compliance requirements can be a major hurdle for small and medium-sized businesses. With this support from PacifiCan, the Greater Vancouver Board of Trade and World Trade Centre Vancouver are proud to help businesses across B.C. build the knowledge and confidence they need to preserve market access, reduce risk, and protect sales and revenue." -Bridgitte Anderson, President and CEO, Greater Vancouver Board of Trade Quick Facts The U.S. is B.C.'s primary export market and represented 57.3% of exports in 2022. For a product to qualify under CUSMA, it must meet certain rules about where and how it was made. Exporters must get a Certificate of Origin to show their product meets these rules. This certificate allows them to get reduced tariffs when trading with the U.S. and Mexico. Since 2019, PacifiCan (and its predecessor, Western Economic Diversification Canada) has provided $4.8M to Export Navigator through two additional projects to help companies across B.C. become export ready and take advantage of international market opportunities. In March 2025, PacifiCan announced $500,000 to help the Greater Vancouver Board of Trade launch their Trade Accelerator Program, which helps companies unleash their export potential. Community Futures British Columbia and its 34 independent member offices are non-profit organizations that support economic growth in rural communities across the province. They are part of PacifiCan's Pacific Business Services Network (PBSN). Associated Links PacifiCan Community Futures British Columbia Export Navigator Greater Vancouver Board of Trade Stay connected Follow PacifiCan on X and LinkedIn Toll-Free Number: 1-888-338-9378 TTY (telecommunications device for the hearing impaired): 1-877-303-3388 SOURCE Pacific Economic Development Canada
Cision Canada
a day ago
- Business
- Cision Canada
Prime Minister Carney announces new measures to protect and strengthen Canada's steel industry Français
HAMILTON, ON, July 16, 2025 /CNW/ - Canada is one of the countries most exposed to the fundamental restructuring of the global steel industry, with substantial steel exports, high per capita use, and a disproportionately open import market. To remain competitive and grow our economy, Canada must reinforce our strength at home. Our objective is to stabilize the domestic steel market and prevent harmful trade diversion amid current tensions in global steel trade. Today, the Prime Minister, Mark Carney, announced a suite of targeted measures to stand behind Canada's steel industry, protect Canadian careers, and invest in our homegrown industrial capacity to build Canada strong. Canada's new government will: 1. Restrict and reduce foreign steel imports entering the Canadian market As stated on June 19, 2025, Canada's new government promised to review our tariff rate quotas for non-free trade agreement (FTA) partners in 30 days. To that end, the following changes to tariff rate quotas will take effect in the coming days. First, Canada will tighten the tariff rate quota levels for steel products from non-FTA countries from 100% to 50% of 2024 volumes. Above those levels, a 50% tariff will apply. Second, for non-U.S. partners with which we have an FTA, Canada will introduce a tariff rate quota level for steel products at 100% of 2024 volumes and apply a 50% tariff on steel imports above those levels. Existing arrangements with our CUSMA partners will remain the same, including no changes to our current trade measures with the U.S. The government is reviewing its remission framework to favour the use of Canadian steel and aluminum in Canadian-made products. Canada will reassess its existing trade arrangements with respect to steel, consistent with progress made in the bilateral discussions with the U.S. and taking into account broader steel negotiations. Canada will also implement additional tariffs of 25% on steel imports from all non-U.S. countries containing steel melted and poured in China before the end of July. These measures will ensure Canadian steel producers are more competitive by protecting them against trade diversion resulting from a fast-changing global environment for steel, creating more resilient supply chains, and unlocking new private capital in Canadian production. 2. Invest in Canadian steel workers and production Building on the enhancements to Employment Insurance (EI) and the EI Work-sharing, the government is investing $70 million in Labour Market Development Agreements to provide training and income supports for up to 10,000 affected steel workers. Through reskilling investments and increased worker supports, we will ensure workers have the skills and support they need to meet the future needs of the industry. To strengthen and ready the workforce to build a more resilient steel industry, Canada will provide $1 billion to the Strategic Innovation Fund to help steel companies advance projects that will increase their competitiveness within the domestic market, catalyze production of steel products not currently produced in Canada, and create jobs in sectors such as defence. The Business Development Bank of Canada Pivot to Grow initiative is being enhanced to provide support to eligible steel small and medium-sized enterprises facing liquidity challenges. The steel industry will be prioritized with $150 million as part of the government's Regional Tariff Response Initiative through the Regional Development Agencies. Finally, the Large Enterprise Tariff Loan will be updated to expand eligibility and provide lower cost financing to firms in the steel industry. These changes will include reducing the minimum annual revenue requirement from $300 million to $150 million, reducing the minimum loan size from $60 million to $30 million, extending the loan maturity from 5 to 7 years, reducing the initial interest rate, and requiring companies to prioritize worker retention. 3. Prioritize Canadian steel to build big projects As the federal government delivers on its mandate to build major, national projects and millions more homes faster, we will ensure Canadian steel and other Canadian materials are prioritized in construction. We will also change federal procurement processes to require companies contracting with the federal government to source steel from Canadian companies. At this transformative moment, we are shifting from reliance to resilience – using Canadian steel to protect our sovereignty, grow our industries, export our energy, and build one strong Canadian economy. It's time to build big, build bold, and build the strongest economy in the G7 using Canadian steel. Quotes "Our steel industry will be central to Canada's competitiveness, our security, and our prosperity. As Canada moves from reliance to resilience, Canada's new government is taking a series of major measures to support, reinforce, and transform the industry to be more resilient in the face of profound shifts in global trade and supply chains." — The Rt. Hon. Mark Carney, Prime Minister of Canada "Our government continues to defend Canadian workers, businesses, and investments as we navigate the new trading environment. At the same time, we are actively strengthening our domestic producers through the significant additional supports announced today, enabling them to build essential infrastructure and ensure the prosperity of workers throughout this key Canadian industry." — The Hon. François-Philippe Champagne, Minister of Finance and National Revenue "Protecting Canada's steel industry means defending Canadian jobs, securing our economic sovereignty, and building the future right here at home. Canada's steelworkers are critical to building a strong Canadian economy; protecting their jobs is protecting Canada's economic future." — The Hon. Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions "Steel workers and their industry are vital to Canada's economy. Canada will support workers as their jobs are threatened by tariffs. Today's announcement will help workers access skills training and retraining tailored to the needs of the steel sector. As we build the strongest country in the G7, the message to Canadian steel workers is clear: we are with you." — The Hon. Patty Hajdu, Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario "Canada is building faster and stronger. By prioritizing Canadian steel and other materials in our projects, we are taking important steps to prioritize Canadian suppliers, protect well-paying jobs, strengthen our supply chain, and support our industry in the face of unjustified U.S. tariffs." — The Hon. Joël Lightbound, Minister of Government Transformation, Public Works and Procurement This document is also available at
