Steel coils lie outside the Algoma Steel facility in Sault Ste. Marie, Ontario, Canada July 25, 2025. REUTERS/Nick Iwanyshyn

OTTAWA, Nov 26 (Reuters) - Canada will offer more support to help the steel and lumber industries deal with U.S. tariffs and create a domestic market, Prime Minister Mark Carney said on Wednesday.

The government has also increased protection for steel and lumber workers, Carney told a press conference.

Ottawa will reduce the quota for steel imports from countries that do not have a free trade agreement with Canada to 20% from 50% of 2024 levels, Carney said.

Countries with an FTA with Canada will see their quotas cut to 75% from 100% of the 2024 level. This does not include the U.S. and Mexico, which are bound by the United States-Canada-Mexico free trade deal.

Canada will also impose a global 25% tariff on targeted imported steel-derivative products, and incorporate border measures to combat steel dumping.

In July, Ottawa set a quota of steel imports at 50% of the 2024 level from non-FTA countries in bid to stop dumping of foreign steel into Canada.

The measures are being tightened to open up the domestic for Canadian-produced steel, said a government official.

The steel industry contributes over C$4 billion to GDP and employs more than 23,000 people directly. It is, however, one of of the two sectors hit hardest by President Donald Trump's 50% tariffs on steel imports from Canada.

Ottawa will work with railway companies to cut freight rates for inter-provincial transfer of Canadian steel and lumber by 50%, beginning in early 2026.

The government said would also support use of locally made steel and lumber in homebuilding, and financial aid for companies dealing with tariff-related impact such as on their workforce, liquidity crunch, and for restructuring operations.

(Reporting by Promit Mukherjee, editing by David Ljunggren)

((Reuters Ottawa editorial; david.ljunggren@tr.com))

Keywords: USA TRUMP/CANADA STEEL