Industrial projects and government support are helping producers redirect sales, but the gains remain uneven across plants and regions.
The Canadian
Newsroom
October 17, 2026
3 min read
Canada’s steel producers are looking closer to home after losing much of their traditional access to the American market. Reuters reported October 16 that mining, energy and artificial-intelligence data-centre projects are creating openings for domestic suppliers. The shift offers some evidence that a highly exposed industry can redirect business, but it is not a uniform recovery and has come with substantial government support.
The pressure began with U.S. steel tariffs, which increased from 25 per cent to 50 per cent in June 2025. Canada had previously sent about 90 per cent of its steel exports to the United States. Reuters cited the Canadian Steel Producers Association as saying shipments fell 60 per cent in 2025. That export-market shock helps explain why finding Canadian customers has become a strategic necessity rather than simply an opportunity for expansion.
There is a measurable change in the domestic market. According to United Steelworkers figures reported by Reuters, Canadian-made steel accounted for 51 per cent of the steel used in Canada in 2025, compared with 41 per cent in 2024. The union calculated those shares using world steel and Canadian import data. A larger domestic share does not, on its own, mean that every mill is producing more or that displaced workers have returned to their jobs.
The new demand is especially visible in western industrial projects. Reuters also described investments by Tenaris at its Sault Ste. Marie operation and Algoma’s emphasis on Canadian demand for steel plate. Meanwhile, job-cut concerns at the Hamilton facility owned by Cleveland-Cliffs show how different products and locations can experience the same tariff environment differently. Orders for energy pipes or plate do not automatically solve weaknesses in other steel markets.
Ottawa’s response includes working-capital loans and limits on foreign steel imports intended to shield domestic producers from displaced global supply. Those measures sit alongside the longer-term ambition of building a less U.S.-dependent economy. The early picture is mixed: domestic customers are becoming more important, but export losses, global competition and plant-level employment risks remain. The meaningful test will be whether current projects translate into durable orders and viable operations once the immediate support measures are no longer the central story.
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