Finance Canada Announces New Measures Regarding U.S. Steel and Aluminum Tariffs
The Department of Finance Canada announced on June 19, 2025, in Ottawa that it will introduce a series of new measures in response to tariffs imposed by the United States on Canadian steel and aluminum sectors.
According to the Department of Finance Canada, the measures are intended to address recent U.S. trade actions and to manage challenges in global trade affecting Canadian steel and aluminum. The government stated it is coordinating with provinces and territories as the measures are put in place.
The department reported that adjustments to existing counter-tariffs on steel and aluminum products will take effect on July 21, 2025. Reciprocal procurement policies are set to begin June 30, restricting certain federal procurement contracts to Canadian suppliers and those from countries with reciprocal trade agreements. According to the department, discussions are underway with provinces and territories regarding the use of Canadian steel and aluminum in government-funded projects.
The announcement included new tariff rate quotas on steel products imported from countries that do not have a free trade agreement with Canada. These quotas are retroactive to January 1, 2025, and set at 100 percent of 2024 import levels. The quotas will be reviewed after 30 days. The department noted that additional tariff measures covering both steel and aluminum will be introduced in the coming weeks. These measures will be based on the country where the steel is melted and poured, and for aluminum, the country where it is smelted and cast.
Finance Canada also stated that two new task forces—one for steel and one for aluminum—will be created to monitor trade and market trends. The department reported that the Large Enterprise Tariff Loan facility, valued at $10 billion, remains available for large businesses affected by U.S. trade actions.
A remission process is in place, which the department says allows businesses time to adjust supply chains. According to Finance Canada, additional remission requests are expected to be approved soon, and the remission framework is under review.