The Canadian government has announced that, starting December 26, 2025, it will tighten its steel trade policy by reducing steel import quotas and imposing a 25% tariff on certain “steel derivative” products. Affected items include fasteners, wires, prefabricated structures, and wind turbine towers.

The measures aim to protect domestic steelmakers from global overcapacity and dumping, particularly amid ongoing U.S.–Canada trade tensions. While the steel sector has welcomed the move, downstream industries—including construction, manufacturing, and clean energy—warn that costs may quickly flow through to housing, vehicle production, and wind power projects.

The government also provides exemptions for certain goods, including automotive and aerospace components, specific wind turbine towers, and products already in transit. Case-by-case tariff relief may be considered where domestic sourcing is not feasible. Industry experts anticipate that the policy could prompt companies to adjust procurement strategies and may affect costs across domestic supply chains.