Today: New U.S. Trade Restrictions Hit Canadian Exports

Toronto, ON – September 29, 2026

The trade situation between Canada and the United States continues to worsen, and Canadian businesses need to pay attention.

We are now seeing the real effects — reduced sales, delayed investments and Canadian jobs being put at risk.

New U.S. trade restrictions start today

As of September 29, the United States has imposed new restrictions on certain Canadian products entering the U.S.

Approximately US$967 million in Canadian exports are affected, including certain alcoholic beverages, whey and dairy-related products and motorcycles.

For some businesses, this is no longer just about paying a higher tariff. Their products may not be able to enter the U.S. market at all.

Canadian steel, aluminum, automotive and manufacturing companies also continue to deal with tariffs and uncertainty over what may happen next.

Look what is happening at STELCO

STELCO has announced that it will indefinitely idle its cold-rolled and coated operations at Hamilton Works.

Up to 500 employees at its Hamilton and Lake Erie operations could be affected.

Stelco says demand in the markets it traditionally serves has fallen almost 25% compared with the 2024 quarterly average, including approximately a 10% decline in Canadian demand.

This should concern businesses well beyond the steel industry.

Today it is steel. Tomorrow it could be another Canadian industry.

Meanwhile, the US is investing billions in Steel

At the same time that we are seeing reduced production and potential layoffs in Canada, a major new steel investment has been announced in Iowa.

Mesabi Metallics plans to invest approximately $15 billion in a new Iowa steel complex, along with approximately $3 billion in Minnesota iron ore operations.

The Iowa plant is expected to initially produce approximately 7.5 million tons of steel annually, with the potential to eventually reach approximately 10 million tons.

The message is clear.

The United States is putting up barriers to Canadian products while investing billions to increase its own domestic production.

Canadian businesses need to consider what this could mean for them.

What about CUSMA?

CUSMA remains in place, but that does not mean the uncertainty is over.

Companies that depend heavily on the U.S. market should assess their exposure now and consider other markets, suppliers, and opportunities.

What is Canada doing?

The Government of Canada has announced billions of dollars in assistance for businesses and workers affected by tariffs and trade disruptions.

Some of the support includes:

Regional Tariff Response Initiative — Up to $3 Million

Eligible businesses in Southern Ontario may qualify for up to $3 million in non-repayable assistance, including up to $2 million for demonstrated liquidity needs.

Funding can also help companies invest in equipment, improve productivity, expand and find new markets.

$7.5 Billion Federal Tariff Response

Ottawa has announced approximately $7.5 billion in new and expanded measures to help Canadian businesses and workers deal with U.S. tariffs.

BDC Business Financing

BDC is offering additional financing, including a $500-million liquidity stream for affected businesses.

Keeping Employees Working

Federal measures also aim to help businesses retain and retrain employees rather than lay them off.

Canadian Counter-Tariffs

Canada has imposed counter-tariffs on $27.6 billion of American imports, including products involving steel, dairy, appliances, agricultural equipment, pulp and paper and electronics.

What should businesses be doing?

Do not wait until there is a problem.

If you manufacture in Canada, export to the United States, buy American products, or depend on a North American supply chain, now is the time to explore your options.

• Can you qualify for government funding?
• Can you get help purchasing machinery or automating your operation?
• Can you get financing to deal with cash-flow pressures?
• Can you develop new markets outside the United States?
• Can you take advantage of Buy Canadian opportunities?
• Can government programs help you keep your employees?

How can GTA Strategies assist?

Every business is different.

We can review your situation, identify government grants, financing and other programs you may qualify for, and help you deal with government.

Whether you are facing tariffs, declining sales, higher costs, expansion needs or looking for new markets, we can help determine what assistance and opportunities are available.

GTA Strategies recently helped a Canadian steel manufacturing company secure a $1 million federal government grant. With Canadian manufacturers facing tariffs, rising costs and uncertainty in the U.S. market, there are government programs available to help businesses invest, expand and remain competitive. Your business may qualify for similar assistance — let us look at what opportunities may be available to you.

Do not wait until there is a crisis.

Let us have a conversation, review your situation, and see what we can do.