Canada mirrored President Donald Trump's 50% steel tariff strategy, amid efforts to strengthen domestic industry against similar U.S. tariffs on steel and aluminum. The trade maneuver applies strictly to steel imports exceeding 2024 levels from non-free trade partners, like China.

"We find ourselves in a situation where our economy is being attacked by a trade war that we didn't start," Prime Minister Mark Carney told onlookers during Canada Day celebrations in Ottawa.

Finance Minister François-Philippe Champagne earlier defended the government's mandate on June 27 to "build one Canadian economy" and protect industries and workers from unjust U.S. tariffs.

Ottawa imposed surcharges on steel imports exceeding 2.6 million tonnes from non-free trade partners, aiming to support Canada’s domestic steel industry against U.S. tariffs, according to a federal news release.

The new steel quota policy, effective June 27, prevents redirection of steel from the U.S. to Canada following U.S. tariffs. It will be reviewed in 30 days, according to the Epoch Times.

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Canada is the largest supplier of both commodities to the U.S., though it also imports a significant amount of steel from its southern neighbour.

Bilateral steel trade is $20 billion annually, with Canada providing 75% of U.S. aluminum imports. These sectors employ 150,000 Canadians, with steel production centred in Hamilton, Ontario, and aluminum in Quebec.

Back in February, President Trump imposed tariffs on Canadian steel and aluminum for the second time in seven years. Similar 25% tariffs in a 2018 trade war devastated Canadian businesses and exports, according to the Department of Industry.

Business leaders cautioned that tens of thousands of jobs were at risk, Blacklock’s reported. 

From March to May, Statistics Canada reported 42,800 manufacturing job losses, attributed to ongoing tariffs. 

An April CBC report predicted 17,700 job losses this year in the metal industries.

On June 4, President Trump doubled Section 232 steel and aluminum tariffs to 50% on nearly all imports, including Canada, citing national security. "Nobody’s going to get around that," he said May 30 at a Pennsylvania rally.

Canada first responded with $29.8 billion in tariffs on U.S. goods. However, Prime Minister Carney said in June that Canada would take time to determine its response.

On June 19, the federal government announced measures to strengthen Canada's steel and aluminum industries, including limiting federal procurement of these materials to Canadian and trade-partner suppliers, effective June 30.

Countries without trade deals, like China, will be subject to strict caps. 

Canadian Steel Producers Association CEO Catherine Cobden is concerned by the timing of the announcement, stating, "We believe it is long overdue."

The association, representing the 17 largest domestic steel companies, stated the measure still permits foreign steel into Canada tariff-free. 

"...without the right border actions, our steel producers will be unable to contribute to projects around our country because we will be a significantly reduced and weakened industry," said Cobden.

In March, Ottawa requested federal grant recipients use Canadian steel and aluminum over U.S. products. Then-Industry Minister Anita Anand expected all Canadians to "do more."