Carney expected to announce new supports for steel industry

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OTTAWA — The federal government plans to curb foreign steel imports and cut interprovincial rail tariffs in a bid to bolster Canada's steel industry, which is threatened by crippling U.S. tariffs.

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A government official, not authorized to talk about details ahead of the public announcement, told The Canadian Press that Prime Minister Mark Carney will announce the new measures on Wednesday.

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The prime minister's public itinerary says Carney will announce “new measures to protect and transform Canada's strategic industries” at 3:15 p.m. ET.

The official said the government plans to cut steel imports from countries where Canada does not have a free trade agreement from 50 per cent to 20 per cent of 2024 levels. The move is aimed at allowing Canadian steel producers to fill a gap in the domestic market, opening up about $854 million in domestic demand.

In July, Carney cut the quota on imports from countries without free trade agreements to 50 percent of 2024 levels and imposed a 50 percent tariff on any imports above the quota.

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Imports from countries with free trade agreements are also expected to fall, although it is unclear by how much. In July, the government imposed a 50 percent tariff on those countries, excluding the United States, on any steel imported in excess of what was imported in 2024.

The government also plans to work with CN Rail to reduce freight rates by 50 percent when shipping steel between provinces. If CN can't demand a lower rate, Ottawa will subsidize the difference, the official said.

It is unclear whether the same measures and subsidies will apply to steel headed to the North, where construction materials are either transported by ship to Nunavut communities during the open water season or trucked to the NWT and Yukon.

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The moves come as the steel industry continues to struggle after U.S. President Donald Trump imposed 50 percent tariffs on Canadian steel in June.

Trump broke off trade talks with Canada last month after the Ontario government launched television ads in U.S. markets using former U.S. President Ronald Reagan's 1987 remarks to highlight the downsides of the tariffs.

In the House of Commons on Tuesday, Carney pledged support for the steel, auto and logging sectors “this week” while Conservatives pressed for a response to his comments over the weekend when he replied: “Who cares?” when asked when he last spoke to Trump.

A government official told The Canadian Press that Carney is also expected to announce support for the softwood lumber industry on Wednesday.

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