Canadian Prime Minister Mark Carney has unveiled a significant support package for the nation's steel and softwood lumber industries, which are reeling from punishing new tariffs imposed by the United States.
The announcement on Wednesday, 26th November 2025, signals a stark turning point in North American trade relations. Carney declared that the era of deepening economic integration with the US is officially over, forcing Canada to bolster its domestic markets.
Confronting the Tariff Threat
US President Donald Trump has imposed severe trade measures, including a 50% tariff on Canadian steel. The long-contentious softwood lumber trade is now facing a 45% tariff following an administration hike last month.
Prime Minister Carney highlighted the profound vulnerability of Canada's export-dependent economy. "Last year, more than 75% of our exports went to the United States," he stated. "90% of our lumber exports, 90% of our aluminum exports, and 90% of our steel exports, all bound for a single market." He affirmed the government's duty to protect workers and industries most exposed to these US tariffs.
The Canadian Response: Quotas and Financial Aid
The new plan involves several key measures designed to insulate the Canadian economy. It dramatically tightens the quota on steel imports from countries without free-trade agreements with Canada, reducing them from 50% to just 20% of 2024 import levels.
Financially, the federal government is injecting an additional $500 million Canadian (approximately £285 million) in loan guarantees specifically for the softwood lumber industry. This is complemented by other initiatives to encourage homebuilders to use Canadian-made materials.
Building Domestic Strength
In a move to strengthen internal trade, Ottawa will begin subsidising freight fees for rail shipments of steel and lumber across provincial borders starting next spring. "We will make it more affordable to transport Canadian steel and lumber across the country by cutting freight rates," Carney said.
The trade dispute escalated last month when President Trump cut off talks with Canada. This followed television advertisements run by the Ontario provincial government in US markets that criticised Trump's tariffs by quoting former President Ronald Reagan.
Carney confirmed he will be in Washington for the FIFA World Cup 2026 draw on 5th December and plans to speak with President Trump then, noting a brief conversation had already occurred on Tuesday. "We are ready to re-engage on those talks when the United States wants to re-engage," he stated.
