Prime Minister Mark Carney on Thursday announced Canada will adopt new tariffs on foreign steel and aluminum , in addition to other measures to protect domestic industries in response to United States tariffs that are disrupting global trade. One new measure will limit the amount of foreign steel coming into Canada, while another will change federal government procurement policies to favour the use of Canadian steel and aluminum. “We must reinforce our strength at home and safeguard Canadian workers and businesses from the unjust U.S. tariffs that exist at present,” Carney said at a press conference. The prime minister just returned from a G7 meeting in Alberta earlier this week, where he said he continued to advance trade talks with the U.S. Carney also said he would review counter tariffs on U.S. steel and aluminum in July based on how much progress is achieved on a new trading framework with the U.S. On June 5, U.S. President Donald Trump increased tariffs on all foreign steel to 50 per cent from 25 per cent. Although the U.S. tariffs affected all countries, Carney said one of their consequences is that steel that other countries would have sent into the U.S. may be diverted into Canada. One of the new measures he introduced will establish a “tariff rate quota,” which will limit the amount of steel a foreign country can export to Canada based on how much it exported in 2024. The Canadian Steel Producers Association, a lobbying group for the country’s largest steel producers, has spent months arguing that U.S. tariffs will flood Canada with other countries’ steel, thereby depressing steel prices here just when they are trying to increase their sales in the domestic market. Two weeks ago, the organization’s board members travelled to Ottawa for a meeting with Carney’s top cabinet ministers and pushed for counter tariffs on U.S. steel, as well as more tariffs on foreign steel coming into Canada. “It is clear that the government is seized with the gravity of the situation facing Canadian steel and understands the need for expediency in responding,” Catherine Cobden, chief executive of the CBSA, said in a press release on June 6. So far, the federal government has stopped short of imposing additional tariffs on either steel or aluminum, but it said it “will adopt additional tariff measures over the coming weeks to address risks associated with persistent global overcapacity and unfair trade in the steel and aluminum sectors, which are exacerbated by U.S. actions.” The share price of Sault Ste. Marie-based Algoma Steel Group Inc. has already fallen to $9.56 from $14.02 earlier this year. The company has recovered slightly from earlier in the month when its share price dipped to $6.63 — a 52 per cent drop from its most recent high. Trump keeps saying the U.S. doesn’t need Canada’s stuff. We asked experts if he’s rightCanadian businesses have to 'turn inward' and focus on the homegrown market, says steel CEO Carney stopped short of saying that Canada would consider making a direct investment in a steel company, but he announced the formation of two stakeholder task forces to monitor trade and market trends in steel and aluminum. Dominic LeBlanc, minister of intergovernmental affairs, said he planned to meet with U.S. officials on Friday. “We need to stabilize the trading relationship with the United States,” Carney said. “We need to have ready access to U.S. markets for Canadian companies and not have our hands tied in terms of our dealings with the rest of the world.” • Email: gfriedman@postmedia.com Bookmark our website and support our journalism: Don’t miss the business news you need to know — add financialpost.com to your bookmarks and sign up for our newsletters here.