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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.
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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.
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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.
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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.
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The Liberals will also implement additional Buy Canadian rules, a key campaign promise during April’s election.
The details of the steel announcement were first reported by The Toronto Star.
The Carney government has made multiple previous announcements to help the steel and lumber sectors, including an $1.25-billion support package for the softwood lumber industry announced in August.
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Carney’s core pitch during the spring election was centered on being able to deal with Donald Trump and quickly cut a deal with the U.S. president, but nine months on, Canada and the U.S. still have not come to any trade agreement.
The Prime Minister’s Office has confirmed to Global News that Carney is considering travelling to Washington for the FIFA World Cup Draw on Dec. 5, a potential opportunity for Carney to meet with Trump in person.
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Trade talks were cut off in October after Trump took issue with an ad the Ontario Government ran on American TV that used clips from former President Ronald Reagan railing against tariffs.
Both the Prime Minister and U.S. Ambassador to Canada, Pete Hoekstra, have said both sides were very close to a deal on some trade aspects before talks were cut off.
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