OTTAWA, November 28, 2025: Canadian Prime Minister Mark Carney announced on Thursday a federal support package to assist the country’s lumber and steel industries following the reintroduction of tariffs by the United States. The new measures are aimed at helping producers absorb the impact of higher export duties and maintain employment in sectors central to Canada’s manufacturing and resource-based economy. The United States Department of Commerce recently confirmed an increase in duties on Canadian softwood lumber and an extension of tariffs on selected steel products.
Washington cited subsidy concerns and pricing practices it views as inconsistent with fair trade. Canadian officials have dismissed those claims, saying the industries operate within market-based systems and comply with all international trade rules. Speaking in Ottawa, Carney said the federal government would allocate more than CAD 1.5 billion in financial support, including low-interest loans, tax deferrals, and targeted assistance for producers in British Columbia, Ontario, and Quebec.
The package will also provide funding to help companies expand into new export markets and modernize operations. The measures are designed to stabilize the affected sectors while maintaining long-term competitiveness within North America’s industrial framework. Officials confirmed that Canada has formally raised the issue with U.S. authorities through bilateral channels and under the Canada-United States-Mexico Agreement (CUSMA). Legal steps are being reviewed to ensure compliance with international trade obligations, with the government indicating it will use established procedures to contest any actions deemed inconsistent with the agreement.
Ottawa maintains commitment to rules-based trade
Canada has previously used dispute mechanisms successfully in cases involving softwood lumber and steel products. Industry associations have expressed concern over the potential impact of the tariffs on cross-border trade and production costs. The Canadian Steel Producers Association said the renewed duties would disrupt established supply chains and increase costs for manufacturers. The Forest Products Association of Canada said the tariffs could lead to a slowdown in shipments to the United States, which remains the country’s largest market for lumber exports.
The lumber and steel industries are significant contributors to Canada’s economy, employing more than 200,000 workers combined. Lumber exports represent a major source of revenue for forest-dependent regions, while steel production remains integral to construction, automotive, and energy infrastructure. The latest tariffs have raised concerns among provincial governments and industry stakeholders about competitiveness and access to the U.S. market.
Economic importance of steel and lumber underscored
Carney said the federal measures would provide immediate relief and support the industries through a period of uncertainty while maintaining Canada’s commitment to fair and open trade. He stated that Canada values its economic relationship with the United States but will take all necessary steps to protect Canadian interests and ensure compliance with international agreements. The financial assistance program is scheduled to begin in early 2026, subject to parliamentary approval. Federal officials said detailed guidelines for funding applications will be released in the coming weeks.
The announcement follows consultations with provincial leaders and industry representatives, who have urged coordinated action to safeguard employment and investment in affected regions. The federal government reiterated that it continues to engage with U.S. counterparts to resolve the dispute and restore stable trade conditions. The statement emphasized that Canada remains committed to rules-based trade and will continue to pursue constructive dialogue through established diplomatic and legal channels. – By Content Syndication Services.