Carney announces supports for Canada’s lumber, steel sectors

The federal government is offering $500 million in loan guarantees to softwood lumber industry and placing limits on imported foreign steel as the two sectors reel from U.S. President Donald Trump’s tariffs, Prime Minister Mark Carney said Wednesday.

Ottawa is cutting back on steel imports from countries that do not have a free trade agreement with Canada from 50 per cent to 20 per cent of last year’s levels.

1:47 Uncertainty in manufacturing sector amid tariff threats

“This will open up more than $850 million in new domestic demand for Canadian steel,” Carney said.

Story continues below advertisement

Carney said the loan guarantee for softwood lumber will “ensure that companies have the financing and the credit support that they need to maintain and restructure their operations during this period of transformation.”

Get breaking National news

For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy.

Carney announced a new “Canadian Forest Sector Transformation Task Force” that will seek recommendations from provinces, territories and the lumber industry on “how to seize new opportunities in softwood lumber and create new growth in the sector,” he said.  what about it? is he creating it? announcing it?

Canada will reduce tariff free steel imports from non-CUSMA free trade area partners from 100 per cent of 2024 levels to 75 per cent, he added.

6:31 Carney to announce new supports for lumber, steel industries

Canada will also impose “a global 25 per cent tariff on targeted imported steel derivative products, such as wind towers, prefabricated buildings, fasteners and wires to grow demand for Canadian made steel.”

Trending Now

• Canadian pistachio recall impacts 86 products in just 2 weeks
• Court issues arrest warrant for Thai co-owner of Miss Universe pageant

Story continues below advertisement

In July, Carney reduced the quota for imports from countries without free trade agreements to 50 per cent of 2024 levels and levied a 50 per cent tariff on any imports above the quota.

Ottawa is also cutting freight rates for transporting Canadian steel across provinces by 50 per cent.

4:37 B.C. prepares to hold emergency softwood summit

“We’ll do that through funding directly Canadian National and Canadian Pacific Kansas City Railways,” Carney said.

The moves come as the steel industry continues to be hammered after Trump levied 50 per cent tariffs on Canadian steel in June.

Softwood lumber, which has long been subjected to U.S. tariffs, is currently taxed at 45 per cent after the Trump administration’s hike last month.

Trump cut off trade talks with Canada last month after the Ontario government ran television ads in U.S. markets using 1987 remarks from former U.S. president Ronald Reagan to highlight the downside of tariffs.

Story continues below advertisement

–with files from Canadian Press

More on Canada More videos

• Oldest brewing school in the U.S. relocating operations from Chicago to Montreal
• Businesses seeing drop in US customers during holiday season amid tariffs
• Canadians want ‘energy security,’ Champagne says amidst pipeline talk
• Quebec to extend religious symbols ban, outlaw university prayer rooms in new bill

• Carney to announce new supports for lumber, steel industries
• Calgary’s $129M in federal housing funds ‘paused’ pending citywide rezoning status
• Carney says B.C. and First Nations ‘have to agree’ on Alberta’s pipeline plan
• 14 Alberta government MLAs are facing recall efforts: What’s going on?