Carney pledges ’Made-in-Canada’ strategy to shield steel industry from U.S.

Published 04/25/2025, 11:30 AM
© Reuters.

Investing.com -- On the campaign trail ahead of Canada’s April 28 federal election, Prime Minister Mark Carney laid out an aggressive industrial strategy centered on steel, autos, and national infrastructure: key sectors he says must be protected from escalating U.S. trade actions. Speaking at Algoma Steel , Carney said Canada must chart a new path as former U.S. President Donald Trump renews trade threats, including tariffs on Canadian aluminum and steel.

“We need high-quality Canadian-made steel to build greater prosperity,” Carney declared, highlighting Algoma Steel’s (NASDAQ:ASTL)(TSX:ASTL) electric arc furnace line, a public-private project expected to cut emissions by 70%. “We are literally weeks away from the first test run… a huge investment that’s been made alongside the Government of Canada, the Government of Ontario. This is how we build Canada strong,” he said.

To fortify domestic supply chains, Carney reiterated his party’s $2 billion strategic response fund for the Canadian auto sector, emphasizing support “from finished vehicles to steel.” He also pledged to roll out a new procurement framework to protect key materials. “We will now deploy a made in Canada procurement strategy that will prioritize Canadian steel, Canadian aluminum, [and] Canadian critical minerals,” Carney said.

With tensions mounting, Carney vowed to use trade tools to defend Canadian industries, reiterating his “counter tariffs, which will cause maximum damage in the US and have only minimal impact here on steel and aluminum.” “Our tariffs match fully the scale of the US assault,” he added, noting that all tariff revenue would be redistributed to impacted workers and businesses.

Carney made clear that this moment demands a shift away from longstanding assumptions about the U.S.-Canada economic relationship. “The old relationship with the United States that we’ve had is over… That’s the new reality,” he said. He promised continued diversification of Canada’s global trade portfolio: “We launched a made in Canada strategy to address a Made in America problem. We’re developing new markets with reliable partners.”

The prime minister also emphasized that infrastructure and housing policy must support domestic production. “We will invest in our homegrown building industry, supporting workers and businesses and driving the adoption of Canadian mass timber, modular, prefabricated technologies. This too will benefit our key industries, including steel,” Carney said.

He framed the election as a referendum on Canada’s economic independence and industrial strength. “This is a time for experience, not experiment,” Carney said, adding that Canada must “build forward, not cut back in a crisis… Above all, in a crisis, we need to bring people together, not pull them apart.”

“We will stand with every single Canadian worker targeted by President Trump’s attacks on our country,” Carney said. “We will stand with you. And crucially, we will fight, protect and build.”

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