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Trudeau Unveils Support Package for Lumber and Steel After U.S. Tariffs

Prime Minister Justin Trudeau announced a support package for Canada's steel and softwood lumber sectors in response to steep U.S. tariffs. Measures include tighter quotas on steel imports from non‑FTA countries, an additional C$500 million in loan guarantees for lumber, and rail freight subsidies beginning next spring. Trudeau said Canada must protect workers and strengthen domestic supply chains while remaining open to resuming trade talks with the United States.

04:02 AM, 11/27/2025Economy
Trudeau Unveils Support Package for Lumber and Steel After U.S. Tariffs

TORONTO — Prime Minister Justin Trudeau announced Wednesday a package of measures to shore up Canada's steel and softwood lumber industries after steep U.S. tariffs cut off a previously lucrative market.

U.S. tariffs currently include a 50% duty on steel and a roughly 45% duty on softwood lumber following recent hikes. Trudeau warned that decades of close economic integration with the United States have exposed Canada to concentrated risk.

“As a consequence, many of our strengths have become vulnerabilities,” Trudeau said. “Last year, more than 75% of our exports went to the United States. Ninety percent of our lumber exports, 90% of our aluminum exports and 90% of our steel exports were bound for a single market. We must protect the workers and industries most exposed to U.S. tariffs.”

Key measures

The federal plan includes three main elements:

  • Tighter steel import quotas: Ottawa will reduce quotas on steel imports from countries that do not have free-trade agreements with Canada, cutting the allowance from 50% to 20% of 2024 levels.
  • Loan guarantees for lumber: The government will provide an additional C$500 million (about US$356 million) in loan guarantees to support the softwood lumber sector, supplementing other incentives to encourage builders to use Canadian-made materials.
  • Rail freight subsidies: Beginning next spring, Ottawa will subsidize rail freight costs for steel and lumber moved across provincial borders to make domestic distribution more affordable and help develop internal markets.

“We will make it more affordable to transport Canadian steel and lumber across the country by cutting freight rates,” Trudeau said, emphasizing a shift toward strengthening domestic supply chains as access to the U.S. market tightens.

Trade talks and diplomatic outreach

Trade negotiations with the United States were suspended last month after the Ontario provincial government ran television advertisements in U.S. markets criticizing the tariffs. Trudeau said he expects to discuss trade issues during a planned trip to Washington for the FIFA World Cup 2026 final draw on Dec. 5 and that he recently had a brief conversation with President Donald Trump.

“We are ready to re-engage on those talks when the United States wants to re-engage,” Trudeau said, while stressing that Canada must act now to protect jobs and industries at risk.

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