Canada’s federal government in Ottawa has launched a new $1 billion loan program to help steel, aluminum and copper producers impacted by U.S. President Donald Trump’s tariffs.
The program will be administered by the Business Development Bank of Canada and will provide financing at favourable terms to help businesses address tariff pressures.
The new loan program was not included in the Liberal Government’s recent spring economic update.
Under the program, Ottawa will provide three-year loans of up to $50 million with zero interest during the first year.
Low interest rates will then be applied in the subsequent years with no repayment required for the entire three-year loan period.
Canada’s steel, aluminum and copper producers are struggling under 50% duties imposed by the Trump administration. There is also a 25% duty levied on derivative products.
Ottawa has responded with a 25% tariff on U.S. steel imports worth $12.6 billion and aluminum products worth $3 billion.
Canada’s federal government has also slapped a 25% surtax on Chinese steel and aluminum products, and quota restrictions to combat unfair trade practices and overcapacity.
The government of Prime Minister Mark Carney also announced an additional $500 million in funding for the already-existing “Regional Tariff Response Initiative” to help small and medium-sized Canadian businesses that are impacted by tariffs.
Leading Canadian steel, aluminum and copper producers include Stelco Holdings (TSX: STLC), Alcoa (AA), and Teck Resources (TSX: TECK.B).
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