Letter from the Minister of Finance to his provincial and territorial counterparts and to the Federation of Canadian Municipalities on the use of Canadian steel: Newfoundland and Labrador

The Honourable Siobhan Coady, M.H.A.
Minister of Finance and Deputy Premier
Government of Newfoundland and Labrador
financeminister@gov.nl.ca

Dear Minister:

As always, we greatly value the collaboration between our governments as we work together to support Canadian workers and ensure a strong, competitive economy. I'm writing today to share an update on a recent federal announcement and to invite your partnership on a key element of our response.

On June 19, 2025, the Government of Canada announced a comprehensive package of measures to defend and support Canadian steel and aluminum producers and workers in the face of the harmful impacts of unjustified U.S. tariffs and the risk of trade diversion.

The federal measures include:

• A tariff rate quota (TRQ) system, imposing a 50% surtax on imports of five classes of steel products from non-free trade agreement (non-FTA) countries that exceed 2024 import volumes;
• New targeted tariff measures on both steel and aluminum based on country of "melt and pour" (steel) and "smelt and cast" (aluminum), to address risks associated with persistent global overcapacity and unfair trade in the steel and aluminum sectors;
• The establishment of two active trade monitoring task forces—one for steel and one for aluminum—to track trade flows and enforce the new regime;
• Adjustments to retaliatory counter-tariffs on U.S. products, with further adjustments planned based on negotiation progress;
• Beginning implementation of reciprocal procurement policies, effective June 30, 2025, to limit access to federal procurements to suppliers from Canada and those countries that offer Canadian firms equivalent access under trade agreements;
• And a commitment to implement strategic infrastructure and procurement policies to better support investment and innovation in Canadian and low-carbon steel and aluminum.

These coordinated efforts are intended to provide immediate economic relief while laying the foundation for long-term industrial strength and clean growth.

A central pillar of this package is the implementation of reciprocal procurement policies. Canadian suppliers continue to face barriers in many international markets, while foreign firms benefit from open access to our procurement systems. This policy corrects that imbalance by ensuring that only suppliers from countries that provide equivalent access to Canadian firms may bid on federal contracts. It builds on previous commitments and follows two rounds of public consultations with businesses, workers, and provinces and territories.

On June 13, 2025, the federal government enacted amendments to the Canadian International Trade Tribunal Procurement Inquiry Regulations (Regulations), clarifying that only Canadian businesses, and businesses from countries with which Canada has procurement obligations under a trade agreement, have standing to bring a procurement-related complaint to the Canadian International Trade Tribunal (CITT).

I would be grateful if you would work with your colleagues to take meaningful steps to implement similar policies in your jurisdictions. To maximize the effectiveness of this policy, we are encouraging provinces and territories to consider taking complementary action within their own procurement systems. A coordinated approach across jurisdictions would send a strong signal of unity and reinforce Canada's resolve to secure fair treatment for our businesses and workers.

Approximately 60 per cent of steel consumed in Canada is produced abroad, often through carbon-intensive methods or supported by non-market practices. While the Government of Canada is one of the largest public buyers of goods and services in the country, provincial, territorial, and municipal projects require large amounts of steel, and that steel should be sourced from within Canada whenever possible. The Government of Canada previously announced it is also exploring additional ways to maximize the use of Canadian steel and aluminum in government-funded projects, including in coordination with Canadian provinces and territories.

Should you wish further details as to how the federal government is implementing reciprocal procurement policies, please contact my office at your earliest convenience. When designing and adopting similar policies, I acknowledge that each of you will take into consideration your respective jurisdiction's unique realities, including regional supply constraints and the practicalities of sourcing materials in a cost-effective manner.

In adopting such policies at all levels of government, we will strengthen supply chains with trusted allies, strengthen domestic production capacity of a key strategic industry, and level the playing field for Canadian workers and businesses – all while adhering to our international trade obligations.

Thank you for your continued partnership and support in defending Canada's economic interests.

Sincerely,

The Honourable François-Philippe Champagne, P.C., M.P.
Minister of Finance and National Revenue

cc:

The Hon. Dominic LeBlanc, President of the King's Privy Council, and Minister responsible for Canada-U.S. Trade, Intergovernmental Affairs and One Canadian Economy

The Hon. Joël Lightbound, Minister of Government Transformation, Public Services and Procurement

The Hon. Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions