The Canadian Steel Producers Association (CSPA) has welcomed Canada's Budget 2026, highlighting proposed trade remedy reforms and incentives for domestic sourcing as measures to support steelmakers facing US tariffs and global overcapacity. In its November 6 statement, the association emphasized the importance of Canadian steel to infrastructure, defense and electricity projects.
Budget proposes stronger trade remedies
Budget 2026 announces plans for public consultations on legislative and regulatory changes to strengthen Canada's trade remedy system and improve its efficiency. The initiative aims to improve the country's response to unfairly priced and subsidized imports as global trade flows shift.
The CSPA welcomed the commitment, calling for continued action to prevent unfairly traded steel from undermining domestic producers, fabricators and workers.
Domestic-content tax incentives to support demand
The government will conduct targeted consultations over 60 days on domestic-content bonuses of up to 10 percentage points under the Clean Technology Investment Tax Credit and up to five percentage points under the Clean Electricity Investment Tax Credit. The proposed incentives would encourage Canadian industrial products in projects supporting the expansion of electricity generation and transmission.
The budget also proposes extending both credits through 2040 and providing nearly C$4 billion over 10 years, starting in 2027-28, for electricity infrastructure, renewable energy and priority power projects. The CSPA supported the domestic-content consultations alongside the government's Buy Canadian procurement policy.
Previously announced C$5.22 billion steel fund complements budget
The budget follows the October 21 announcement of a Joint Steel Action Fund, comprising five-year commitments of C$3.55 billion from the federal government and C$1.67 billion from Ontario. Funding will support production diversification, overseas market development and steel supply for defence, advanced manufacturing, energy and infrastructure.
The accompanying measures include prioritizing Canadian steel in public procurement, stronger border enforcement and a Canada-Ontario Steel Task Force, whose initial priorities include reducing steel transportation costs.
Ottawa extends tariff relief to June 2028
Separately, on November 9, Ottawa extended broad tariff relief for eligible US imports by one year to June 30, 2028, expanding coverage to non-steel goods used in mining, quarrying and oil and gas extraction, and goods used by public education entities.
