Canada’s steel industry has long been a cornerstone of our manufacturing sector, providing thousands of high-paying jobs, supplying essential materials for construction, and supporting a network of suppliers and service providers across the country. Yet, in recent years, it has faced headwinds from international trade disputes, foreign dumping, and tariffs that threaten competitiveness. To protect this vital industry and maintain economic stability, Canada needs a proactive strategy that boosts domestic demand for steel ,one that doesn’t rely solely on unpredictable global markets.

Two major levers stand out: accelerating highway construction and expanding residential building projects. Together, these sectors can create a consistent, long-term demand for Canadian steel while improving infrastructure, housing availability, and economic growth.

Tariffs and the Steel Industry’s Vulnerability
Steel tariffs- whether imposed by the U.S., the EU, or other trading partners,directly affect Canadian producers by raising export costs and reducing competitiveness abroad. In some cases, these tariffs are a response to perceived overproduction or unfair pricing by global players, but Canada often gets caught in the crossfire despite being a relatively small and fair-trading producer.

When tariffs hit, steelmakers face three main risks:
Reduced export volumes – Fewer foreign buyers due to higher landed costs.

Lower domestic prices – A surplus of steel in Canada drives prices down.

Production slowdowns and layoffs – Mills cut back output to match reduced demand.

The solution is clear: if foreign markets are uncertain, we need to strengthen domestic consumption to keep production lines running and workers employed.

Highway Construction: A Steel Demand Engine
Canada’s highways are the backbone of its economy, connecting provinces, facilitating trade, and supporting everyday mobility. However, much of our highway network is aging. According to Infrastructure Canada reports, many bridges, overpasses, and stretches of roadway require significant upgrades or replacement over the next decade. This presents an opportunity, not just to improve safety and efficiency, but also to inject steel demand into the domestic market.

Highway projects consume large volumes of steel for:
1.Rebar and reinforcing mesh in concrete roads, bridges, and tunnels.
2.Structural beams and girders for overpasses and elevated sections.
3.Guardrails, signage posts, and lighting structures.

By prioritizing Made-in-Canada steel in procurement policies for federal and provincial transportation projects, the government can directly channel billions of dollars into the domestic steel supply chain. In turn, this helps stabilize production levels, maintain jobs, and sustain tax revenues from the steel sector.

Moreover, infrastructure investment has a powerful multiplier effect. The economic activity generated by highway projects, through contractors, suppliers, and service providers, stimulates broader industrial demand, indirectly benefiting other sectors linked to steel manufacturing, such as mining, rail, and fabrication.

Residential Construction: Housing Crisis Meets Industrial Policy
Canada is currently facing a severe housing shortage. The Canada Mortgage and Housing Corporation (CMHC) estimates that we need an additional 3.5 million housing units by 2030 to restore affordability. Meeting this target will require an unprecedented level of residential construction, from high-rise condominiums to suburban developments.

Steel plays a central role in modern residential building:

Structural steel framing in mid- and high-rise buildings.
Steel studs and beams for interior construction.
Reinforced concrete in foundations, parking garages, and balconies.
Steel roofing and cladding for durability and fire resistance.

By ensuring that a significant portion of these housing projects use Canadian-made steel, the construction boom needed to solve the housing crisis can also act as an industrial policy tool, keeping mills busy and workers employed, even during periods of international trade turbulence.

Furthermore, residential projects tend to be more locally anchored than large-scale exports. When we build homes for Canadians, the demand for steel is predictable, stable, and less vulnerable to global price swings.

Policy Tools to Link Construction and Steel Protection
For infrastructure and housing construction to truly protect the steel industry, a few targeted policy measures are essential:
Buy Canadian Steel Mandates – Similar to “Buy America” rules in the U.S., these would require publicly funded projects to source steel domestically wherever feasible.

Long-term Infrastructure Plans – Multi-year highway upgrade programs ensure steady steel demand, avoiding boom-bust cycles that can destabilize producers.

Public-Private Partnerships in Housing – Encouraging developers to commit to Canadian steel in exchange for incentives, such as faster permitting or tax benefits.

Green Steel Certification – Promoting Canadian steel’s lower carbon footprint as a value-added choice for environmentally conscious construction.

A Win-Win Strategy

Highway construction and residential projects are not just about fixing potholes and building homes, they are strategic economic tools. By aligning these essential national priorities with the needs of the steel industry, Canada can reduce its vulnerability to tariff shocks, protect thousands of jobs, and ensure that a key industrial sector remains globally competitive.

The result is a virtuous cycle: stronger infrastructure, more affordable housing, a thriving domestic steel market, and a more resilient Canadian economy.