Canada offering aid of $1.1B to firms hurt by US metals tariffs

The Canadian government has announced CAD$1.5 billion (USD$1.1 billion) in funding available to help companies impacted by US metals tariffs.

This will include the creation of a new CAD$1 billion Business Development Bank of Canada (BDC) program.

The BDC will be open to industries that manufacture and export products that contain steel, aluminum, or copper. Additionally, the program will support companies using these metals in a “significant way” in their production.

The initiative will offer financing at “favorable terms” to help businesses address immediate financial pressures. This will give the industry a new tool to adapt to future market conditions, the government said.

“We are taking concrete action to strengthen Canada’s economy by standing behind our steel, aluminum, and copper industries,” Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions, said in a statement on Monday.

“The new measures announced today will protect workers and ensure companies have the tools and financing they need to keep operating, growing, and building Canada’s strength at home,” she added.

The Canadian government is giving an additional CAD$500 million through the Regional Tariff Response Initiative (RTRI) to aid tariff-impacted businesses in all sectors of the economy.

The US currently subjects Canadian steel and aluminum imports to 50% Section 232 tariffs.

CSPA cheers

The Canadian Steel Producers Association (CSPA) welcomed the government’s announcement amid the growing impact of the US tariffs.

“Recent changes by the US administration to their ‘derivative’ tariff regime are having a profound impact on our downstream customers – those who use our primary steel to produce a wide array of products,” CSPA President and CEO Catherine Cobden said in a statement on Monday.

“Today’s funding support is therefore essential to help pivot and realign our businesses to ensure our long-term competitiveness as we navigate this ongoing trade war,” she added.

Cobden noted that while CSPA appreciated the steps Canada has taken so far, “the situation is evolving and more must be done.”

Recall the Trump administration last month made significant changes to tariffs on goods containing steel and aluminum. Such “derivative” products had been subject to tariffs of up to 50% that applied only to the value of the steel or aluminum content within a product. The updated framework applies tariffs to the full value of imported goods across both 50% and 25% duty tiers, replacing the content-based methodology for derivative products.

Full-value tariffs of 50% apply to steel and aluminum articles and certain derivative products, while other derivative categories are subject to 25% duties. Lower rates are available in specific cases, including for products made entirely with US-origin metal or certain imports from the United Kingdom.

Ethan Bernard

Ethan Bernard is managing editor for Steel Market Update. He previously worked for American Metal Market as a copy editor in the New York office for two years, starting in 2008. Later, he copy edited AMM’s monthly magazine on a freelance basis from 2015 until 2017. With experience in financial copywriting and textbook publishing, he holds a BA in Comparative Literature from UC Berkeley, and an MFA in Creative Writing from New York University. He can be reached at ethan@steelmarketupdate.com or 724-759-7871.