By Paul Vieira
OTTAWA--New limits on steel imports into Canada take effect the day after Christmas, the country's finance department said Friday.
The limits, aimed at supporting Canada's steel sector amid hefty U.S. tariffs, were revealed in late November. The Department of Finance said they will kick in on Dec. 26, in a release that provides more technical details on implementation.
The limit on steel imports have taken on greater importance after Algoma Steel revealed plans to shed 1,000 workers, or about a third of its workforce, as the company shifts to shut down production from its blast furnace and coke ovens that became financially unsustainable with U.S. tariffs.
Countries that don't have free-trade agreements with Ottawa will be largely shut out from exporting their steel into Canada without facing a 50% tariff. Levels of steel products from those jurisdictions--among them China, Turkey and Brazil--will be cut to 20% of 2024 levels, from the previous 50% level unveiled in July.
Canada is also limiting imports from countries with free-trade agreements excluding the U.S. and Mexico, to 75% of 2024 levels before a 50% tariff kicks in. U.S. steel has faced a 25% duty since March.
Canada is America's largest foreign supplier of steel, and Canadian-made steel faces a 50% duty when entering the U.S.
Meanwhile, Canada also revealed a list of steel-derivative products that would now be subject to a new 25% tariff. The targeted list includes door and window frames, fasteners, and towers.
On a one-year basis as of September, exports of basic and semi-finished iron and steel products declined 38%.
Write to Paul Vieira at paul.vieira@wsj.com
(END) Dow Jones Newswires
12-12-25 1354ET
