Sections of a dumpster are welded together on the assembly line of Les Ateliers Beau Roc in Vars, Ont., on Monday.Spencer Colby/The Canadian Press
The federal government is offering $1.5-billion in support to industries hit hard by protectionist U.S. tariffs, including the steel, aluminum and copper sectors.
Industry Minister Mélanie Joly and Digital Innovation Minister Evan Solomon announced a new $1-billion Business Development Bank of Canada program to extend loans on “favourable terms” to industries that manufacture and export products containing steel, aluminum or copper.
They said the financing assistance is intended to provide “rapid liquidity to viable businesses facing significant economic challenges.”
The ministers cited changes to existing U.S. tariffs on steel, aluminum and copper April 6 that significantly increased the pain on Canadian manufacturers already struggling with rising costs and uncertain access to the American market.
“We are taking concrete action to strengthen Canada’s economy by standing behind our steel, aluminum and copper industries,” Ms. Joly said in a statement.
Industry Minister Mélanie Joly speaks at Les Ateliers Beau Roc in Vars, Ont., on Monday.Spencer Colby/The Canadian Press
She said Ottawa believes the new measures will “protect workers and ensure companies have the tools and financing they need to keep operating, growing, and building Canada’s strength at home.”
In April, the U.S. ratcheted up the pressure on Canadian industry by beginning to levy a 25-per-cent tariff on the entire value of imported “derivative” goods made of steel, aluminum and copper – a category that includes hundreds of products, from industrial equipment to household appliances.
Previously, Washington had applied a 50-per-cent tariff to derivative goods, but only on the value of the metal inside the product, which often accounts for a small portion of the total value.
As it announced this money, Ottawa called on banks to help.
“The government expects Canada’s financial institutions to continue to work with the businesses as we lean in collectively to support this sector,” the ministers said in a statement.
In addition, the government is providing an additional $500 million through its existing Regional Tariff Response Initiative to support tariff-affected businesses in all sectors of the Canadian economy.
With reports from Mark Rendell