(MENAFN) Canada's government unveiled sweeping trade restrictions and domestic stimulus measures Wednesday designed to guarantee Canadian steel manufacturers enhanced access to their home market.

A news release from the prime minister's official website detailed that effective December 26 this year, tariff rate quotas for nations lacking free trade agreements with Canada will plummet from 50 percent to 20 percent of 2024 benchmarks. Countries maintaining active free trade pacts with Canada will see quotas drop from 100 percent to 75 percent, while imports exceeding quota thresholds will continue facing a 50 percent surtax.

Furthermore, Canada will impose a 25 percent tariff on the complete value of designated steel derivative products from all nations. The preliminary list is projected to encompass over 10 billion Canadian dollars ($7.1 billion U.S. dollars) in imports.

Additional critical support mechanisms include a new "Buy Canadian Policy" mandating federal contracts surpassing 25 million Canadian dollars ($17.8 million U.S. dollars) to boost domestic consumption, plus a 50 percent freight rate reduction on interprovincial lumber transportation launching Spring 2026 to slash internal logistics expenses.

Canadian primary steel manufacturers—who historically exported more than half their production with over 90 percent destined for the U.S.—have witnessed exports collapse 24 percent year-over-year. Since U.S. tariffs took effect, steel sector employment has contracted, with approximately 1,000 positions eliminated to date, the release stated.

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