Canada Strikes Back at Trump Tariffs With ₹1B Aid, New Steel Quotas

Canada will introduce new measures to defend its steel industry against the impact of tariffs. Prime Minister Mark Carney announced the implementation of the plan proposed a month ago, during a visit to Hamilton-based steel fabricator Walter's Group .

"This is about protecting Canadian jobs and standing up for fair trade," Carney said per CPAC, adding that more than 90% of Canada's steel exports currently go to the U.S.-a concentration he called "unsustainable."

We will also implement tariffs on steel imports from all non-U.S. countries containing steel melted and poured in China," he added. Carney's reaction comes after President Donald Trump doubled tariffs on Canadian steel and aluminum to 50% on June 3.

To address this situation, Carney proposed a new tariff rate quota system. Starting August 1, countries with free trade agreements (excluding the U.S. and Mexico) will face a 50% tariff on any steel exports to Canada that exceed 2024 volumes. For countries without such agreements, the quota for tariff-free steel imports will be cut to half of 2024 levels, with the same 50% tariff applied above that threshold.

Furthermore, the government will provide up to CA$1 billion ($730 million) into the Strategic Innovation Fund to help domestic steel companies modernize, develop high-value defense-related products, and shift into markets less exposed to foreign competition. Ottawa also pledged CA$70 million ($50.90 million) over three years for retraining and support for up to 10,000 workers via Labour Market Development Agreements.