Federal Government Announces New Measures in Response to U.S. Steel and Aluminum Tariffs
The federal government outlined several new measures on June 19, 2025, in response to tariffs imposed by the United States on Canadian steel and aluminum. The actions were presented by François-Philippe Champagne, Minister of Finance and National Revenue.
The measures affect trade between Canada and the United States and are intended to alter tariffs, adjust procurement rules, and provide support for Canadian businesses, according to the Department of Finance Canada.
Counter-tariffs on U.S. steel and aluminum products will be adjusted beginning July 21. Reciprocal procurement policies will take effect on June 30, limiting federal government contracts to Canadian suppliers and to those from countries that provide comparable access to Canadian companies under existing trade agreements. The Department reported that additional ways to increase the use of Canadian steel and aluminum in government-funded projects are being considered, including coordination with provinces and territories.
To address concerns about market stability and trade diversion, the Department stated that new tariff rate quotas will be set at 100 percent of 2024 import levels for steel coming from countries without a free trade agreement with Canada. These quotas will take effect retroactively and will be reviewed after 30 days.
Additional tariff measures targeting global overcapacity and what the Department described as unfair trade in steel and aluminum are planned in the coming weeks. These will be based on the “country of melt and pour” for steel and “country of smelt and cast” for aluminum.
Two task forces—one for steel and one for aluminum—are being created to regularly monitor trade and market trends, according to the Department of Finance Canada. These task forces will include government and industry stakeholders.
The Large Enterprise Tariff Loan facility, a $10 billion program supporting eligible large businesses struggling to access traditional financing, remains open for applications. According to the Department, it is directed at firms that were viable before the recent trade actions by the United States.
A remission process continues to allow businesses time to adjust their supply chains. The Department said remissions are given on a case-by-case basis and further requests are expected. The remission framework is under review to encourage the use of Canadian materials in domestic production.
The Department of Finance Canada stated the government is prepared to take further action as needed and will continue working with provinces and territories regarding further U.S. tariff developments.
