Trade war update: Carney’s Liberals to announce steel, lumber protections, sources say

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Help is on the way for Canadian steel producers and those in softwood lumber affected by the ongoing trade dispute with the United States.

Multiple senior government sources confirmed to CTV News that Prime Minister Mark Carney will announce measures on Wednesday to protect the steel industry, which has been hit with 50 per cent tariffs by the Trump administration.

The measures, first reported by the Toronto Star, include cutting limits to the amount of steel that can be imported into the country from nations that do not have a free trade agreement with Canada. That amount will drop from 50 to 20 per cent, according to a senior government source with knowledge of the announcement.

The measure could allow Canadian steel producers to take market space worth approximately $854 million, according to the senior source.

The federal government is expected to announce it will help steel producers by cutting shipping costs by 50 per cent for moving product within Canada. Ottawa will work with the Canadian National Railway (CN) to lower freight costs, and if the lowest rate cannot apply, the federal government will help pay the difference, the source told CTV News.

More financial aid for steel companies and workers is also expected in tomorrow’s announcement, according to the source. The move to protect the industry comes as both steel and aluminum producers continue to deal with 50 per cent import duties imposed by U.S. President Donald Trump.

The Carney government will also increase the total money available to struggling softwood lumber companies to $1.2 billion. It’s a $500-million increase from the previously announced Softwood Lumber Development Program, which gives companies access to government-backed loans.

Tariffs on Canadian softwood lumber going into the U.S. were originally 35 per cent, but were increased to 45 per cent by Trump last month.

“Canadian wood has a higher tariff rate going to the United States than Russia does. I want to let that sink in,” B.C. Premier David Eby pointed out during an Oct. 10 press conference.

However, trade talks between the two countries have been put on pause for the last month.

Angered by an anti-tariff ad featuring former U.S. president Ronald Reagan, Trump called for discussions to be put on hold. Saskatchewan Premier Scott Moe was in Washington, D.C., last week, meeting the top members of Trump’s cabinet.

“I think there is a realization that we do need to get back to the negotiating table,” Moe said in an interview Monday on CTV’s Power Play of his meetings in the U.S. Capital.

Moe had meetings with U.S. Treasury Secretary Scott Bessent, Secretary of Commerce Howard Lutnick and U.S. Trade Representative Jamieson Greer. The Saskatchewan premier says there could be differences of opinions between the two sides on “what the path forward may look like.”

In the House of Commons on Tuesday, Carney admitted having made a “mistake” over the weekend, when he was dismissive of a reporter’s question about the last time he had spoken with Trump.

“Who cares?” the prime minister said during a press conference at the conclusion of the G20 summit in South Africa. “I mean, it’s a detail. It’s a detail. I spoke to him. I’ll speak to him when it matters again.”

During question period on Tuesday, the Conservatives said Carney’s dismissive tone was a disregard for Canadians who are affected by the trade war. Pressed further by opposition members of Parliament, Carney admitted “that was a poor choice of words about a serious issue.”

He added that his government cares about creating jobs, pointing to the federal budget, which he says capitalized $1 trillion over five years, while also promoting new trade deals that were signed recently.