Canada will adjust counter-tariffs on US aluminium and steel imports from 21 July 2025 to protect its industry. Tariff-rate quotas on non-FTA steel imports, set at 2024 levels, will be applied retroactively and reviewed after 30 days to prevent trade diversion.

Canada’s Department of Finance has announced new measures on 19 June 2025 to safeguard steel and aluminium against US tariffs.

According to the announcement, Canada will adjust counter-tariffs on US aluminium and steel imports starting 21 July 2025, to protect its domestic industry amid potential US tariffs.

The government will also take these measures:

  • Effective 30 June, the government will begin implementation of reciprocal procurement policies to limit access to federal procurements to suppliers from Canada and from their reliable trading partners that provide reciprocal access to suppliers from Canada through trade agreements. As shared earlier this year, the government is also exploring additional ways to maximise the use of Canadian steel and aluminium in government-funded projects, including in coordination with Canadian provinces and territories.
  • The government will protect Canada’s steel industry by establishing new tariff rate quotas of 100% of 2024 levels on imports of steel products from non-free trade agreement partners to stabilise the domestic market and prevent harmful trade diversion as a result of the US actions that are destabilising markets. These quotas will be applied retroactively and will be reviewed in 30 days.
  • The government will adopt additional tariff measures over the coming weeks to address risks associated with persistent global overcapacity and unfair trade in the steel and aluminium sectors, which are exacerbated by US actions. Measures will be applied based on the “country of melt and pour” for steel and the “country of smelt and cast” for aluminium.
  • The government will immediately create two government-stakeholder task forces, one for steel and one for aluminium. These committees will meet regularly to closely monitor trade and market trends to support government decision–making and better support our industries and workers.
  • The new CAD 10 billion Large Enterprise Tariff Loan facility remains open to applicants. This programme supports eligible large businesses that are facing difficulties in accessing traditional sources of market financing by providing access to liquidity. This will help employers that were viable before the recent US trade actions sustain their operations and return to financial resilience as the market stabilises.
  • The government remains prepared to take additional steps as needed and will continue to review the appropriateness of its response, pending developments with US tariffs. The federal government will continue to work closely with provinces and territories to ensure their input and regional interests are reflected in its response to the US tariffs.

Earlier, on 19 June 2025, Canadian Prime Minister Mark Carney warned of potential counter-tariffs on US steel and aluminium if a trade deal with President Donald Trump isn’t reached within 30 days.

This follows Trump’s announcement on 30 May 2025 to raise tariffs on imported steel and aluminium from 25% to 50%, effective 4 June.

Trump previously imposed a 25% tariff on Canadian imports on 30 January 2025 and a 10% baseline tariff on all imports, including Canada, on 2 April 2025.

However, Trump delayed the “reciprocal” tariffs for 90 days. This delay did not apply to tariffs on China.