OTTAWA, Nov. 26 (Xinhua) -- The Canadian government on Wednesday announced some restrictive trade measures and domestic incentives to ensure its own steel producers better access to the domestic market.
According to a news release from the prime minister's official website, effective Dec. 26 of this year, tariff rate quotas for countries that do not have a free trade agreement with Canada will be reduced from 50 percent to 20 percent of 2024 levels, and tariff rate quotas for countries that have a free trade agreement in force with Canada from 100 percent to 75 percent, with over-quota volumes continuing to face a 50 percent surtax.
Additionally, Canada will apply a 25 percent tariff on the full value of listed steel derivative products from all countries. The initial list is expected to cover over 10 billion Canadian dollars (7.1 billion U.S. dollars) in imports.
Other key supports include a new "Buy Canadian Policy" for federal contracts exceeding 25 million Canadian dollars (17.8 million U.S. dollars) to stimulate domestic demand and a 50 percent freight rate discount on interprovincial lumber shipments starting in Spring 2026 to lower internal transport costs.
Canadian primary steel producers, who have traditionally exported over half their output with over 90 percent going to the U.S., have seen exports fall 24 percent year over year. Since U.S. tariffs were imposed, employment in the steel sector has dropped, with roughly 1,000 jobs lost to date, said the release. ■
