---
title: New Measures Announced to Support Canadian Steel and Aluminum Industries
description: The government has announced new trade measures to protect the Canadian steel and aluminum industries from global overcapacity and unfair trade practices.
image: https://blog.coleintl.com/hubfs/Images/Trade%20News%20pictures/CAD%20Customs-3.png
---
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# New Measures Announced to Support Canadian Steel and Aluminum Industries
Trade Update: June 20,2025
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New Measures Announced to Support Canadian Steel and Aluminum Industries
4:01
**The measures, which address global overcapacity and unfair trade practices, will help control the flow of foreign metals into Canada and provide financial support for businesses affected by tariffs.**
The government has unveiled a set of trade measures to [protect the Canadian steel and aluminum industries](https://www.canada.ca/en/department-finance/news/2025/06/canada-bolsters-its-measures-to-protect-canadian-steel-and-aluminum-workers-and-industries.html).
The announcement follows the U.S.’s decision on June 4 to [double its tariffs on imported steel and aluminum](https://blog.coleintl.com/tradenews/trump-announces-doubling-steel-tariffs-to-50-percent-as-of-june-4)from 25% to 50%.
Following a meeting with U.S. President Donald Trump during the G7 summit in Alberta, Carney confirmed that Canada and the U.S. have agreed to [pursue trade talks](https://apnews.com/article/canada-carney-trade-us-trump-tariffs-4d22145bc3834b65f6e68805ce0cc3e6), and negotiations to establish new economic partnerships are set to take place before July 21.
[Referring to U.S. tariffs](https://www.coastreporter.net/the-mix/steel-industry-groups-say-carneys-retaliatory-plan-for-us-tariffs-falls-short-10834503), Carney stated, “We must reinforce our strength at home – and safeguard Canadian workers and businesses.”
He also [told reporters](https://www.cnbc.com/2025/06/19/canada-to-address-unfair-trade-in-steel-and-aluminum-sectors-carney-says.html) that, “Canada will soon adopt tariff measures to address risks associated with persistent global overcapacity and unfair trade.”
In the meantime, the Canadian government will establish two task forces—one for steel and one for aluminum.
These groups will meet regularly to monitor the evolving trade landscape and support government decision-making.
## **New tariffs and import controls**
As part of its measures, the federal government will adjust its existing counter-tariff rates on U.S. steel and aluminum on **July 21** to "levels consistent with progress made in the broader trading agreement with the U.S."
Moreover, as of **June 30**, Canada will impose tariff-rate quotas (TRQs) on imported steel products from countries without a free trade agreement (FTA) with Canada.
The quotas will be set at [100% of 2024 import volumes](https://discoveryalert.com.au/news/canada-trade-protection-strategy-global-2025/), and imports exceeding them will face higher duties.
They will be applied retroactively and reviewed in 30 days, with full enforcement anticipated later this year.
Additionally, to further address Canadian trade concerns, the government is planning new tariff measures based on “country of melt and pour” for steel and “country of smelt and cast” for aluminum.
## **Federal procurement shifts toward domestic supply**
Beginning **June 30**, Canada will implement reciprocal procurement policies, under which new federal contracts will include conditions that limit eligibility to Canadian manufacturers and “[reliable trading partners](https://halifax.citynews.ca/2025/06/19/retaliatory-tariffs-canada-us-trade-steel-aluminum/).”
This includes suppliers from countries that provide reciprocal access to their own procurement markets through trade agreements.
The federal government is also exploring additional ways to maximize the use of Canadian steel and aluminum in government-funded projects.
## **Financial support to Canadian businesses**
The Canadian government will maintain access to the [Large Enterprise Tariff Loan](https://ceefc-cfuec.ca/letl-overview/) (LETL) facility, which offers up to $10 billion in low-interest financing to eligible firms.
The facility helps reduce the financial burden on Canadian companies due to current and potential tariffs and countermeasures, considering the increased costs they face.
Moreover, a [remission process](https://www.canada.ca/en/department-finance/programs/international-trade-finance-policy/process-requesting-remission-tariffs-that-apply-on-certain-goods-us.html) is currently in effect to give Canadian businesses time to adjust their supply chains.
Remissions are being granted on a targeted, time-limited basis, and additional applications are expected to be approved in the coming days.
The government will work on reviewing the broader remission framework to encourage the use of Canadian steel and aluminum in domestically manufactured products.
## **How Cole International can help**
At Cole International, we offer [trade consulting services](https://www.coleintl.com/services/trade-consulting/) to help Canadian businesses navigate changes in global trade policies.
We also provide expert guidance and hands-on support to ensure business continuity and facilitate compliance with changing trade requirements.
**Please get in touch with one of [our trade professionals](https://www.coleintl.com/contact-us) to discuss the impact of Canada’s new steel and aluminum trade measures on your business.**
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