Department of Finance Canada announced that the federal government would seek to extend key steel and aluminum tariff measures for one year.
If approved by the Governor in Council, Canada would extend the steel tariff-rate quota regime for imports from non-CUSMA partners and the existing horizontal tariff relief for eligible steel and aluminum products from the United States.
The measures would be extended to June 27 and June 30, 2027, respectively.
A tariff-rate quota allows a set quantity of a product to enter duty-free or at a lower duty rate while leaving imports above the quota subject to a higher duty. Finance Canada said imports above the quota would continue to face a 50 per cent tariff.
Eligible goods for continued horizontal tariff relief include steel and aluminum products used in auto and aerospace manufacturing and for public health, health care, public safety, and national security purposes.
Aluminum goods used in manufacturing, processing, food and beverage packaging, and agricultural production would also be eligible for extended tariff relief.
The tariff measures sit alongside a $5 billion Strategic Response Fund, a $1 billion Business Development Bank of Canada financing program for metal manufacturers and exporters, and Regional Tariff Response Initiative funding.
Together, the tariff relief and financing programs are aimed at firms whose input costs, sourcing decisions, and export plans are affected by steel and aluminum trade measures.