Liberals to announce loans for lumber producers, new quotas on some foreign steel

Carney will unveil new funding for lumber and steel producers and tighten limits on foreign steel imports as Canada faces mounting pressure from the U.S. trade war.

Prime Minister Mark Carney will announce additional help for the ailing lumber and steel industries Wednesday afternoon, including additional money for softwood lumber producers and further restrictions on some foreign steel imports, as companies deal with the fallout from the trade war with the U.S.

A senior government source told Global News Carney will add an additional $500 million to the Softwood Lumber Development Program, giving companies access to government backed loans. The total value of the money available to struggling softwood companies will now be $1.2 billion.

Lumber producers in British Columbia and the Maritimes have been ravaged by U.S. tariffs and duties that can exceed 45 per cent.

Quotas on foreign steel imports will be reduced from 50 per cent to 20 per cent of 2024 import levels — for countries that do not have a free trade deal with Canada.

This is the second quota reduction the Carney government has announced on non-free trade countries, a measure largely targeted at reducing Chinese imports of steel.

Steel quotas on countries that Canada has a free trade agreement with will also be dropped, but details surrounding that move are unclear.

Ottawa will also subsidize the cost to move Canadian steel and lumber domestically by 50 per cent. Carney will announce the federal government will directly pay freight companies half the cost of moving these goods within Canada.

The Liberals will also implement additional Buy Canadian rules, a key campaign promise during April’s election.