At first glance, it looks like Prime Minister Mark Carney is protecting Canadian steel. But if you look closer, this is really about pushing an ESG (Environmental, Social, and Governance) agenda—especially the goal of “carbon-free steel.”
Why Canadian Steel Is Struggling
Canada has long imported steel because making it here is too expensive. High taxes, strict regulations, and costly operations make it hard for businesses to stay competitive. Even before Justin Trudeau, manufacturing in Canada was shrinking, and many companies relied on a weaker Canadian dollar just to sell products to the U.S.
Canadian industries never wanted cheap, foreign steel to flood the market—but they also don’t have many choices. It’s often cheaper to buy steel from countries like China, even if that means facing criticism for “dumping” (selling below cost).
Trump’s Tariffs and Business Logic
When Donald Trump came along, he wasn’t just a politician—he was a real estate developer who understood how construction and steel pricing worked. His solution? Tariffs. Rather than letting industry groups waste time and money lobbying, Trump simply slapped tariffs on foreign steel to protect U.S. jobs and manufacturing.
He said the reason was “dumping,” but it was really about giving American businesses a level playing field. And while some countries tried to strike back with their own tariffs, the truth is Canada’s operational costs are just too high to compete effectively either way.
What Canada Is Really Doing with ESG
While Trump focused on bringing back jobs, Canada is focused on carbon credits and climate goals. Many Canadian companies have already signed onto ESG standards. Why? Because they get carbon credits—which are like tradable coupons for reducing emissions. These credits help them avoid penalties and look good on paper.
Carney’s former company, Brookfield, is deep into this system and even partners with China to help them comply with ESG rules. This lets Chinese companies bypass tariffs using carbon offsets—while regular Canadians pay higher prices.
How Carbon Credits Work in Canada
In Canada, companies or governments can earn carbon credits by reducing emissions. They can also buy credits to “offset” pollution they can’t avoid. This creates a market where climate action becomes a financial product—but it doesn’t always lead to real environmental benefits.
For example, the federal government can:
- Buy carbon credits directly to cover its emissions
- Support programs that reduce pollution and generate credits for trade
But in practice, this often just shifts the burden onto consumers, who pay more while businesses and governments play a numbers game.
Media Spin and the Patriotic Illusion
Canadian media often paints these moves as “nationalistic” or “pro-Canada.” But the truth is, it’s more like corporate welfare disguised as patriotism. Behind the scenes, it’s about helping large companies benefit from new climate schemes—not rebuilding Canada’s manufacturing strength.
Carney’s Latest Announcement
Carney announced that tariffs and quotas would increase on imported steel:
- 50% tariff on steel from countries like China and Turkey if it exceeds certain limits
- Tariffs on countries with free trade agreements (except the U.S. and Mexico) if they go over 2024 volumes
- 25% tariffs on steel that was “melted and poured” in China, even if it came from elsewhere
He also promised that federal projects (like housing, infrastructure, and defense) would now be required to use Canadian steel.
Industry Reaction
The Canadian steel industry welcomed the news, but with caution:
- Some leaders said it helps recover lost ground after Trump’s tariffs
- Others aren’t sure if it goes far enough to protect local jobs and production
- There’s concern that these moves won’t fully offset the impact of U.S. tariffs
Meanwhile, Carney is promising $70 million for training steelworkers and $1 billion in innovation funds to help steel companies go green.
Political Reactions
- Conservatives say they want a deal with the U.S. that doesn’t include any tariffs
- Bloc Québécois claims Carney is backing down and compromising too much
- Carney says he’s working on a deal but admits some tariffs may remain
The Bigger Picture
This isn’t really about helping Canadian steel. It’s about shifting Canada toward a carbon-credit economy, where ESG goals come before real industry revival. And while it may sound like a patriotic move on the surface, regular Canadians are left with higher prices and fewer jobs.
If you’re feeling like you’ve been misled, you’re not alone. These policies are built on layers of bureaucracy, environmental slogans, and political spin—not real solutions.
Don’t put your trust in government.
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