Canadian Design and Construction Report staff writer
Canadian steel producers say they are disappointed after Prime Minister Mark Carney announced in August that the federal government will scrap retaliatory tariffs on American goods covered under the Canada-U.S.-Mexico trade agreement (CUSMA).
Speaking on Parliament Hill following a virtual cabinet meeting, Carney said the move aims to salvage Canada’s economic relationship with the United States.
“Canada currently has the best trade deal with the United States. While it is different from what we had before, it is still better than that of any country,” he said.
The Canadian Steel Producers Association (CSPA) responded critically. Catherine Cobden, the group’s president and CEO, said the announcement “is a disappointment for Canada’s steel producers.”
Cobden acknowledged the government’s intent to support sectors affected by U.S. Section 232 tariffs but said actions are needed, not just words. “On Monday, we saw the United States deeply escalate their attack on our industry through the execution of 407 new tariffs on steel products impacting close to $28 billion in Canadian exports,” she said.
She criticized the government for maintaining countermeasures for Section 232 sectors while failing to address what she called “mistakes” in Canada’s earlier retaliatory approach, including an April reprieve. Cobden noted that a significant volume of U.S. steel enters Canada without tariffs, despite the fact that most could be produced domestically. “Currently 83% of all imported U.S. steel could be produced in Canada, but instead they get free access to the Canadian markets while our industry suffers,” she said.
Carney also said his government will focus on strengthening the economy through expanded international trade, faster home building, and investments in national defence. He added that Canada will soon announce the first of several “nation-building projects” aimed at improving infrastructure across the country.
He is currently in Poland and will travel to Germany and Latvia.
A senior government official told reporters ahead of the trip that bringing Canada closer to Europe is a “top priority” for the government.
The trip is to broadly focus on helping to diversify Canada’s trade prospects with existing allies amid the United States’ ongoing global tariff campaign, as well as deepening defence and security pacts, the official said.
However, leaders in the steel industry are calling for reciprocal tariffs to protect Canadian industries and workers and said the CSPA is eager to meet with the government to resolve the issue.
