OTTAWA — The Canadian government is set to unveil new measures on Wednesday aimed at supporting the domestic steel industry, which has been adversely affected by U.S. tariffs. Prime Minister Mark Carney will announce restrictions on foreign steel imports as part of a strategy to assist local producers facing financial challenges due to ongoing trade tensions with the United States.

The proposed measures will reduce the share of steel imports from countries without a free-trade agreement with Canada from 50 percent to 20 percent. This change is expected to create approximately $854 million in market opportunities for Canadian steel producers, according to a senior government official who requested anonymity due to the sensitive nature of the announcement.

In addition to import restrictions, Carney plans to address domestic shipping costs for steel manufacturers. He will request that CN Rail lower freight rates for interprovincial shipments of Canadian steel. If the lowest rates cannot be applied, the government will subsidize the difference to support the industry.

Further assistance for steel businesses and workers is also anticipated in the announcement. However, the new measures will not include increased tariffs on foreign steel imports, a demand made by Catherine Cobden, president of the Canadian Steel Producers Association. The official noted that steel producers have requested a variety of support measures and are prepared to meet the demand created by the upcoming import restrictions.

While the steel sector faces challenges, aluminum producers have fared better by diversifying their exports and maintaining shipments to the U.S., where Canadian aluminum is crucial for American industries. Carney's announcement comes after trade talks aimed at resolving tariffs on steel, aluminum, and energy were halted by U.S. President Donald Trump last month. Trump had expressed frustration over Ontario's anti-tariff advertising campaign, leading to the suspension of discussions.

On Tuesday, Carney acknowledged a recent misstep in his communication regarding his interactions with Trump. He stated, "Who cares? I mean, it’s a detail. It’s a detail. I spoke to him. I’ll speak to him again when it matters." This comment drew criticism from Conservative Party members, who accused Carney of neglecting the concerns of Canadians affected by the tariff war.

In response to the criticism, Carney defended his government's actions, emphasizing that most Canadian exports remain tariff-free. He acknowledged the pressures faced by various sectors, including steel, aluminum, and lumber, stating, "We care. We are acting in those sectors. There will be announcements this week of further support."

As the government prepares to announce these measures, the focus remains on how they will impact the Canadian steel industry and its ability to compete in a challenging global market.