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(Bloomberg) -- Canada will add new tariffs to a list of steel products, including many US-made items, as Prime Minister Mark Carney seeks to protect an industry badly hurt by the trade war and a flood of cheap Chinese metal.
Carney announced the new 25% levy on steel derivative products Wednesday as part of a suite of measures to help producers. The tariff will apply starting Dec. 26 to about C$10 billion ($7.1 billion) of imported products including wind towers, prefabricated buildings, fasteners and wires.
About 40% of the items on the list are typically brought in from the US, a Canadian government official said in a background briefing.
It marks the first time Carney has added new import taxes to US products since he dropped most of Canada’s retaliatory tariffs in September. A broad 25% tariff on US steel and aluminum remains, and the prime minister has resisted calls to match US President Donald Trump’s 50% levy on those metals.
“This is an encouraging leap forwards. We’ve been advocating for a lot of these things for many months,” said Keanin Loomis, head of the Canadian Institute of Steel Construction. “The Prime Minister has a much firmer grasp on this file than he did a few months ago.”
Carney has struck a conciliatory tone with Trump for months in an effort to reach a deal to lower US tariffs on key sectors. But Trump called off the talks on Oct. 23 after he was angered by an Ontario government anti-tariff ad, and it appears unlikely the negotiations will resume anytime soon.
The prime minister also said he would extend a timeline — for the final time — for companies to apply for tariff relief on steel they import from the US to use in manufacturing, food packaging and agriculture. After Jan. 31, firms will no longer be able to seek so-called “tariff remission” for those uses.
At a news conference, Carney said the moves were not intended to put pressure on the Trump administration. “It’s not targeted at the US,” he said. “It’s a global approach, which is creating some space for Canadian steel producers to fill it.”
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