Smaller Canadian steel manufacturers say federal efforts to protect the domestic steel industry are making it harder and more expensive for them to buy Canadian steel.
Rahim Moloo, owner of Toronto-based Conquest Steel, said his family business has seen the price of large steel coils rise sharply over the past year. The company uses the coils to make products such as raised garden beds and window wells.
Conquest Steel buys its raw materials from Canadian steel mills, including Stelco and Dofasco in Hamilton, Ont.
“The price has risen steadily over the last 12 months,” Moloo said, adding the company could see its steel costs nearly double in 2027.
He also said Canadian steel supplies are becoming harder to secure, making it difficult for smaller manufacturers to plan for future orders.
In June 2025, Ottawa introduced tariff-rate quotas on some steel imports from countries that do not have a free-trade agreement with Canada. Imports above the quota face a 50 per cent tariff.
Robert Glasgow, a partner at KPMG Law, said the policy was designed to protect Canadian steelmakers from global competition and U.S. tariffs.
However, Moloo said the policy has contributed to higher domestic prices and limited supply.
“Protecting the steel mills is important,” he said. “But at the same time, my cost of goods domestically has skyrocketed.”
The federal government said work is underway to address unintended effects of its steel policies and provide more certainty to businesses.
Glasgow said Ottawa may need to review its import quotas to ensure smaller Canadian manufacturers can continue producing goods domestically at reasonable prices.
Moloo said he plans to keep fighting for his business and hopes the federal government will support smaller manufacturers as well.
