Wednesday November 26, 2025 | OTTAWA, ON
by Mary P Brooke | Island Social Trends
Steel and lumber were the subject of today’s next steps by the Carney Liberal federal government.
A suite of supports and other economic instruments focused on the steel and softwood lumber sectors were announced today by Prime Minister Mark Carney in Ottawa, leading within a continuing theme that the world is changing rapidly.
He was accompanied by Jobs and Families Minister Patty Hajdu and Energy and Natural Resources Minister Tim Hodgson. Steel executive Rob Bedard also attended.
The BC Council of Forest Industries (COFI) welcomes today’s announcement as support to continue navigating escalating US duties, trade uncertainty and competitiveness challenges in international markets. COFI says Carney’s commitments “reflect an important recognition of the role forestry and forest products play in the economic strength of Canada”.
US is reshaping all trade relationships:
The United States, the world’s largest economy, is fundamentally reshaping all its trade relationships, causing major disruption and upheaval for Canadians.
From reliance to resilience:
“It is time to transform our economy from one that is reliant on a single trade partner to one that is stronger, more self-sufficient, and resilient to global shocks,” it was stated by the prime minister today.
“That means working with urgency and determination to transform our strategic industries so they can adapt, compete, and win in this new global environment.”
Using Canadian steel and Canadian lumber is part of strengthening Canada’s home-grown economy.
Workers and businesses:
Carney says his new government has moved quickly to “protect and strengthen the sectors most affected by US tariffs”.
That includes introducing new measures to help workers gain new skills, support businesses as they modernize and diversify, and boost domestic demand for Canadian goods.
“As we build the economy of the future, we’re ensuring workers and industries are ready to seize its opportunities.”
Strengthening steel and lumber:
Building on previously announced measures to help transform the Canadian steel and softwood lumber industries, the following new initiatives were announced today.
The federal government says it will:
- Further limit foreign steel imports to ensure that Canadian steel producers have better access to the domestic market
- Canada will tighten the tariff rate quota levels for steel products from non-free trade agreement (FTA) partners from 50% to 20% of 2024 levels.
- For non-CUSMA partners with which we have an FTA, Canada will reduce tariff rate quota levels for steel products from 100% to 75% of 2024 levels.
- Canada will impose a global 25% tariff on targeted imported steel-derivative products such as wind towers, prefabricated buildings, fasteners, and wires.
- Canada will also toughen our border measures to combat foreign steel dumping and verify compliance with applicable surtaxes. To do so, we will equip the Canada Border Services Agency with a dedicated steel compliance team, enhanced detection of false declarations, and expanded an online reporting tool.
- To move away from relying on imported steel and to give Canadian companies time to adjust their supply chains to use Canadian steel, the temporary remission of Canadian tariffs on imports will end on January 31, 2026, for steel used in Canada for manufacturing, food and beverage packaging, and agricultural production.
- These measures will boost the competitiveness of Canadian steel producers by protecting them against trade diversion. They will also unlock over $1 billion in new domestic demand for Canadian steel.
- Make it easier to build with Canadian steel and Canadian lumber
- To make it more affordable to transport Canadian steel and lumber across the country, Canada will work with railway companies to cut freight rates for transporting Canadian steel and lumber interprovincially by 50%, beginning in Spring 2026.
- To maximize the use of Canadian softwood lumber in housing, Build Canada Homes will prioritise shovel-ready, multi-year projects that can begin within 12 months and that use Canadian wood products.
- With a funding allocation of roughly $700 million next year, Build Canada Homes – the new federal homebuilding agency – alone will create $70 to $140 million of new demand for Canadian wood products – and attract private and provincial capital to multiply its impact.
- Canada’s new government will implement their Buy Canadian Policy later this year, which requires that all contracts worth over $25 million prioritize Canadian materials – including steel and lumber. This will also apply across federal grants and contributions programs.
- Increase protections for Canadian steel and lumber workers and businesses so they can adapt and thrive in this new global landscape
- Canada will earmark more than $100 million over two years, starting in 2025-2026, in program costs to provide support to eligible employers in all sectors with an active Work-Sharing agreement and who commit to supporting training for employees working reduced hours. This measure will increase the income replacement for eligible workers, helping up to 26,000 Canadian workers in various sectors, including steel and lumber.
- To ensure companies have the financing and credit support they need to maintain and restructure their operations during this period of transformation, Canada will provide an additional $500 million to the Business Development Bank of Canada (BDC) Softwood Lumber Guarantee Program.
- To support softwood lumber firms facing liquidity pressures, Canada will earmark $500 million in funding under the Large Enterprise Tariff Loan facility.
- To make it easier for the forestry sector to access federal support, the federal government will establish a single window to applications – a one-stop shop to help companies navigate our suite of support programs.
- To examine and report on how the forest industry can maintain its competitiveness over the long-term, Canada will launch a Canadian Forest Sector Transformation Task Force. The Task Force will seek input and recommendations from provinces, territories, and industry on managing the sector’s transformation.
===== RELATED:
- BC Forests Minister Parmar pleased with federal lumber sector supports (November 26, 2025)
- COFI Op-ed: federal lumber support effectiveness depends on speed & efficiency (November 26, 2025)
- NEWS SECTIONS: 45th PARLIAMENT of CANADA | BUDGET 2025 | COUNCIL of the FEDERATION | MAJOR NATIONAL PROJECTS | FORESTRY | TRADE DIVERSIFICATION