*

Carney introduces new steel tariffs on trade partners to

protect

the domestic steel industry

*

Canada introduces C$1 billion fund for steel industry

projects

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Domestic steel prioritized in government procurement,

Carney

says

(Adds details from the announcement, comment from the steel

industry)

By Divya Rajagopal

TORONTO, July 16 (Reuters) - Prime Minister Mark Carney

on Wednesday said Canada will introduce a tariff rate quota for

countries with which it has free trade agreements, excluding the

United States, to protect the domestic steel industry.

A 50% tariff will apply to imports from these countries that

surpass the 2024 volumes, though Canada will honor existing

arrangements with its United States-Mexico-Canada Agreement

trade partners, Carney said.

Canada will implement additional tariffs of 25% on steel

imports from all countries containing steel melted and poured in

China before the end of July.

Carney is responding to complaints from the domestic

industry, which had said that other countries are diverting

steel to Canada and making the domestic industry uncompetitive

due to U.S. tariffs.

The Canadian steel industry had asked the government to

introduce tougher anti-dumping measures to protect the domestic

industry. U.S. President Donald Trump increased import duties on

steel and aluminum to 50% from 25% earlier this month. Canada is

the top seller of steel to the United States.

Carney also said domestic steel companies would be

prioritized in government procurement, and he introduced a C$1

billion fund to help steel companies advance projects in

industries such as defense.

"These measures will ensure Canadian steel producers are

more competitive by protecting them against trade diversion

resulting from a fast-changing global environment for steel,"

Carney said on Wednesday.

For countries without free trade agreements with Canada, the

government lowered the tariff-free quota to 50% of 2024 volumes

from 100% previously. Above the quota, imports will also face a

50% tariff.

Catherine Cobden, president and CEO of the Canadian Steel

Producers Association, in an interview with the CBC, said the

timing wasn't sufficient for domestic steelmakers confronting a

crisis.

"This is something we should have been doing all along,

but it's fantastic to see that we are making progress," Cobden

told the CBC.

In a separate statement, Canadian steel maker Evraz said it

has filed a complaint against steel imports from Mexico, the

Philippines, South Korea, Turkey and the United States, against

unfairly priced imports of Oil Country Tubular Goods.

(Divya Rajagopal and Ryan Patrick Jones in Toronto; Editing by

Caroline Stauffer and Leslie Adler)