OTTAWA — The federal government plans to inject $500 million in loan guarantees for Canada’s softwood lumber industry in an effort to aid the sector amid Canada’s trade war with the United States.
A government official not authorized to speak about the plan before details are made public later today tells The Canadian Press that Prime Minister will announce the measures that also include aid for the steel sector.
As first reported by the Toronto Star, Ottawa also plans to limit foreign steel imports from countries where Canada does not have a free-trade agreement, from 50 per cent to 20 per cent of 2024 levels.
The federal government also plans to work with CN rail to cut interprovincial freight rates in half for both steel and softwood lumber, and subsidize the difference if CN can’t oblige.
The moves come as the steel industry continues to be hammered after U.S. President Donald Trump levied 50 per cent tariffs on Canadian steel in June.
Softwood lumber, which has long been subjected to U.S. tariffs, is currently taxed at 45 per cent after the Trump administration’s hike last month.
This report by The Canadian Press was first published Nov. 26, 2025.
Nick Murray, The Canadian Press
