Canadian government to further support steel, softwood lumber industries

Additional initiatives part of new industrial strategy the country is building.

Canada has announced a new set of measures aimed at further supporting the country's softwood lumber and steel industries.

Part of a new industrial strategy being built by the government, the initiatives are designed to "protect and transform" the steel and lumber sectors in Canada.

The measures include further limiting foreign steel imports; making it easier to build using Canadian lumber and steel; and increasing protections for businesses and workers through financing and credit support.

Amongst the specific changes is the planned cutting of freight rates for transporting domestic steel and lumber from one province to another by 50%. The government will be working with railway firms to get this rolled out from Spring 2026.

Contracts worth over CA$25 million will also be required to prioritise Canadian materials such as steel and lumber. Tariff rate quota levels for steel products will be adjusted as well.

Previously announced initiatives include the establishment of Build Canada Homes, which is the country's new federal homebuilding agency.

Prime Minister Mark Carney, whose government seeks to make Canada more self-sufficient amidst trade shocks, stated: "Steel and lumber are core to Canada's competitiveness. To compete and win in this new global environment, these strategic sectors must be ready to seize new markets at home and around the world.

"Canada's new government is moving with urgency and determination to transform these industries and empower workers and businesses with the tools they need to bridge to the future – and thrive in it."

Minister of Industry Mélanie Joly added: "We are building a stronger, more resilient economy by standing behind our steel and softwood lumber industries.

"The new measures announced... combined with continued federal investments, will protect workers, safeguard our industries affected by international tariffs, and ensure companies have the tools and financing they need to keep operating, growing, and strengthening our supply chains."