Prime Minister Mark Carney has unveiled sweeping new measures to shore up Canada’s lumber and steel industries, with the softwood sector placed front and centre amid stalled negotiations with the United States. “The Canadian steel and lumber industries will always be at the heart of Canada’s competitiveness, our security and our strength,” the prime minister said overnight, describing Canada’s pivot as moving “from reliance to resilience” in its relationship with Washington.
Wood Central understands the federal government will inject CA$500 million into the Softwood Lumber Development Program, lifting its loan pool to $1.2 billion, while halving freight rates for shipping lumber and steel nationwide from next spring. A new Buy Canadian Policy, reported by Wood Central last month, will also require defence and construction contracts to prioritise domestic materials.
In British Columbia, which is responsible for 50% of Canada’s softwood lumber, the support is a welcome relief for an industry desperate for a new softwood agreement with the United States. “The BC Lumber Trade Council (BCLTC) welcomes the federal government’s new measures to support Canadian lumber producers and workers,” said president Kurt Niquidet. “As Canadian exporters face unjustified U.S. tariffs and sustained market uncertainty, these commitments underscore Ottawa’s recognition of the sector’s economic importance”
Steel measures were also unveiled, with imports from countries without a free trade agreement with Canada to be cut sharply — quotas reduced from 50 to 20 per cent of 2024 levels — in a move largely aimed at Chinese steel. Whilst quotas for countries with free trade agreements, excluding the U.S. and Mexico, will fall from 100 to 75 per cent, alongside a global 25 per cent tariff on targeted steel products. Carney said these restrictions would collectively unlock “more than $850 million in new domestic demand for Canadian steel.” The fiscal cost of halving freight rates is estimated at $146 million.
Industry leaders applauded the package.
“The Canadian Steel Producers Association applauds the Government of Canada’s announcement today to better support our steel industry,” said Catherine Cobden, president and CEO. “We have weathered a challenging year, and we’re grateful for this renewed comprehensive package for Canada’s steel producers and the tens of thousands of workers who make up our industry. “These measures are necessary to level the playing field to stabilise our domestic industry, support our workers and our Canadian customers.”
It comes as Conservative Leader Pierre Poilievre accused Carney of failing to deliver for producers of building materials: “Conservatives believe in our workers. We want to protect steel, aluminium, lumber and other sectors. We want to negotiate a hard bargain to protect them and get them re‑entry into the American market tariff‑free.”
The announcement comes as trade talks with Washington remain frozen following Ontario’s anti‑tariff ad last month. In June, the U.S. raised tariffs on steel and aluminium imports to 50 per cent, and in October added a 10 per cent tariff on softwood lumber, lifting levies from 35 to 45 per cent. Canada maintains 25 per cent counter‑tariffs on U.S. steel and aluminium.
To learn more about Canada’s plan to use home grown mass timber to build thousands of factory-based public housing across the country, click here for Wood Central’s special feature from September.
