The federal government announced on Monday another package to support the struggling steel, aluminum, and copper sectors after U. S. President Donald Trump tightened his tariff regime, impacting Canadian industry significantly.
At a facility in Vars, a rural area near Ottawa, Industry Minister Melanie Joly shared that the government will create a $1-billion loan program through the Business Development Bank of Canada (BDC) to help companies most affected by Trump’s tariffs stay afloat. This funding will be available on “favourable terms” for at least the next three years, she noted.
A separate $500-million fund will provide financial aid to companies making what the government calls “strategic pivots,” as the U. S. market for some products becomes increasingly challenging.
“When markets turn unfair, Canada needs institutions that can step up and deliver fast. BDC is ready to get this money into the operations of steel and aluminum companies quickly, keeping their doors open and them producing,” said Isabelle Hudon, the president and CEO of the Crown corporation.
These actions follow previous government efforts aimed at supporting sectors struggling under Trump’s so-called 232 tariffs on industrial goods – levies that Canada is seeking to negotiate away as part of CUSMA review discussions.
The government has already placed tariffs on certain Chinese steel to lessen foreign competition and launched a $5-billion strategic response fund among other initiatives.
This new package is considered necessary now because Trump expanded steel, aluminum, and copper levies last month to cover more products, including previously exempt items like steel coils and aluminum sheets. Consequently, Canadian tool and mould makers are suddenly facing large customs fees at the border.
When asked if today’s announcement suggests Ottawa believes U. S. tariffs are here to stay, Joly replied: “You don’t know. I don’t know. This is not up to us to answer. These decisions will be taken south of the border. But we don’t just sit idle waiting for things to happen – we act,” she said.
WATCH | Canada backing ‘challenged’ steel, aluminum and copper sector with $1.5 billion in tariff supports:
Canada backing ‘challenged’ steel, aluminum and copper sector with $1.5 billion in tariff supports
Evan Solomon, minister responsible for economic development in southern Ontario, along with Industry Minister Mélanie Joly announced $1.5 billion in federal support for hard-hit Canadian industries dealing with U. S. tariffs on steel, aluminum, and copper products. ‘We are going to make sure that they have a way to get through the current crisis so they emerge stronger tomorrow,’ Solomon stated.
U. S. Trade Representative Jamieson Greer warned late last month that Trump’s administration remains committed to these tariffs and that things won’t revert back to how they used to be.
“The president’s not gonna go back to the old situation where we had no tariffs and we just let foreign goods made by foreign workers come in without any fee,” Greer said.
Stats Can data shows that exports of steel products have essentially collapsed due to U. S. trade actions.
Last year alone saw these exports – most going directly into the U. S.- drop down to just one-third of their value before Trump returned as president enacting his protectionist agenda. Algoma Steel based in Sault Ste. Marie has laid off hundreds as a result.
Trump’s tariffs aim at boosting employment within American industries while favoring domestic products over imports.
However, data from the World Steel Association indicates only a slight increase in production stateside thus far; American steel output rose by just three percent in 2025.
The U. S Tax Foundation reports that section 232 tariffs alone have resulted in an equivalent loss of about 154,000 jobs across America.</
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Canada backing ‘challenged’ steel, aluminum and copper sector with $1.5 billion in tariff supports
Evan Solomon, minister responsible for economic development in southern Ontario, along with Industry Minister Mélanie Joly announced $1.5 billion in federal support for hard-hit Canadian industries dealing with U. S. tariffs on steel, aluminum, and copper products. ‘We are going to make sure that they have a way to get through the current crisis so they emerge stronger tomorrow,’ Solomon stated.
U. S. Trade Representative Jamieson Greer warned late last month that Trump’s administration remains committed to these tariffs and that things won’t revert back to how they used to be.
“The president’s not gonna go back to the old situation where we had no tariffs and we just let foreign goods made by foreign workers come in without any fee,” Greer said.
Stats Can data shows that exports of steel products have essentially collapsed due to U. S. trade actions.
Last year alone saw these exports – most going directly into the U. S.- drop down to just one-third of their value before Trump returned as president enacting his protectionist agenda. Algoma Steel based in Sault Ste. Marie has laid off hundreds as a result.
Trump’s tariffs aim at boosting employment within American industries while favoring domestic products over imports.
However, data from the World Steel Association indicates only a slight increase in production stateside thus far; American steel output rose by just three percent in 2025.
The U. S Tax Foundation reports that section 232 tariffs alone have resulted in an equivalent loss of about 154,000 jobs across America.</
Source link
