The Canadian Steel Producers Association (CSPA) has welcomed Canada’s 2026 budget, citing plans to strengthen trade protections and encourage domestic sourcing amid US tariffs and global steel oversupply. The association set out its position in a statement on November 6.
The government plans consultations on legislative and regulatory changes to make Canada’s trade remedy system more effective and improve its response to unfairly priced and subsidized imports. The CSPA urged Ottawa to keep tackling unfairly traded steel, which it says threatens domestic producers, fabricators and workers.
Targeted consultations over 60 days will consider domestic-content bonuses of up to 10 percentage points under the Clean Technology Investment Tax Credit and up to five points under the Clean Electricity Investment Tax Credit. The incentives are intended to support Canadian products in projects expanding electricity generation and transmission. The budget also proposes extending both credits to 2040 and providing nearly C$4 billion over 10 years, starting in 2027–28, for electricity infrastructure and priority projects.
The plans complement the C$5.22 billion Joint Steel Action Fund announced on October 21. Over five years, the federal government will contribute C$3.55 billion and Ontario C$1.67 billion. The funding is intended to diversify production, develop overseas markets and supply steel for defence, advanced manufacturing, energy and infrastructure. Other measures include prioritizing Canadian steel in public procurement and strengthening border enforcement.
Separately, on November 9, Ottawa extended tariff relief for eligible US imports until June 30, 2028. The expanded coverage includes non-steel goods used in mining, quarrying and oil and gas extraction, as well as goods used by public education entities.
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