What’s happened.
Canada’s steel industry is clawing back ground it lost to tariffs, according to Reuters and coverage of the same report. After the United States raised its steel tariff from 25% to 50% in June 2025, Canadian shipments south fell 60%, the Canadian Steel Producers Association says. But the share of steel used in Canada that was actually made in Canada rose to 51% in 2025 from 41% the year before, according to the United Steelworkers union — in other words, more than half the steel consumed here now comes from a Canadian mill, and imports dropped from 59% to 49%.
The new buyers are mining, energy and data centre projects, including a 1.2 gigawatt data centre being built in Saskatchewan, and the pull is strongest in Western Canada. Ottawa added $1 billion in loans to the steel, aluminum and copper industries in May, extended its cap on foreign steel coming in, and is directing infrastructure spending to Canadian steel through its Buy Canadian purchasing rules. Tenaris, which makes steel pipe in Sault Ste. Marie, Ontario, put $306 million into expanding production for Canadian oil and gas customers. Algoma, the largest Canadian producer, laid off 1,000 workers last December but its chief executive Rajat Marwah told a July earnings call that its “pivot to a Canada-centric, plate-first strategy is working.” The counterweight: overall Canadian steel demand grew about 2.7% in 2025 and is projected to grow only about 0.9% in 2026, per an OECD report in July, so the gain is about share, not a boom.
What it means for your business.
If you fabricate, machine or build with steel, treat Canadian mill supply as your default source for 2027 quotes rather than a workaround. Domestic mills are competing hard for the same jobs you are quoting, which should help your input pricing, and project owners buying under Buy Canadian rules increasingly need you to document Canadian content. Rewrite your capability sheet and quote cover letters now to state Canadian material sourcing plainly — buyers in mining, energy and data centre construction are asking.
Next step: Before your next round of quotes, confirm Canadian mill pricing and state your Canadian content on the face of the bid.
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Reported developments are separated from MKTGSpace’s suggested commercial next steps. Reconfirm current conditions before acting.
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