Imposing tariffs on projects being built today will make the power Canadians and Canadian steel manufacturers use more expensive
Ottawa, November 27, 2025—The Canadian Renewable Energy Association (CanREA) is very concerned by the Government of Canada’s new measures to further limit foreign steel imports. The decision to impose a 25 percent tariff on imported steel-derivative products, including wind towers, will increase the cost of electricity for Canadians and Canadian steel producers.
CanREA recognizes the need to protect and bolster critical industries like Canadian steel when they are unfairly harmed by major trading partners. However, imposing a tariff on a product that Canada needs to power its economy will only drive up the cost of electricity for all ratepayers and make Canadian industry less productive and less competitive.
Currently, Canada has only one domestic producer of wind turbine towers, based in Quebec. This manufacturer makes towers for the Quebec market and a few other regional markets. Canada currently lacks sufficient domestic manufacturing capacity to produce the number of wind-turbine towers that the country needs to power its economy.
The Canadian International Trade Tribunal recognized this in its 2023 assessment of the industry. They reported Canada does not have the domestic capacity to meet the needs of wind projects being built across the country and that supply chain logistics make it nearly impossible to ship turbine towers west of Ontario.
“Imposing steep tariffs on turbine towers risks derailing projects and, in turn, jeopardizes Canada’s ability to power its future economy on time,” said Vittoria Bellissimo, CanREA’s President and CEO.
When developing projects, the renewable energy industry secures its supply chains years before it builds. This means that towers ordered several years ago will now be subject to a tariff that will see their costs balloon by tens of millions of dollars.
Importantly, Indigenous communities are integral to successful renewable energy project development. The increased costs of steel will impact Indigenous communities as project co-owners across the country.
“We understand the need to protect Canadian jobs, but this decision will put jobs at risk,” said Fernando Melo, CanREA’s Senior Director of Public Affairs and Federal Policy. “Dozens of wind power projects have been contracted and are at various stages of construction in British Columbia, Saskatchewan, Ontario, Quebec, New Brunswick and Nova Scotia.”
CanREA is hopeful that the federal government will create a remission process for projects that are contracted and under construction and for those that are being submitted to Ontario’s LT2 procurement process by December 18. The companies designing million-dollar projects cannot go back to the drawing board within this short window of time.
“We are ready to work with the federal government to course-correct and ensure that the renewable energy projects the Canadian industry needs to stay competitive can be built on time and without burdening Canadians with higher electricity costs,” said Melo.
Quotes
“Imposing steep tariffs on turbine towers risks derailing projects and, in turn, jeopardizes Canada’s ability to power its future economy on time.”
—Vittoria Bellissimo, President and CEO, Canadian Renewable Energy Association (CanREA)
“We understand the need to protect Canadian jobs, but this decision will put jobs at risk. Dozens of wind power projects have been contracted and are at various stages of construction in British Columbia, Saskatchewan, Ontario, Quebec, New Brunswick and Nova Scotia.”
“We are ready to work with the federal government to course-correct and ensure that the renewable energy projects the Canadian industry needs to stay competitive can be built on time and without burdening Canadians with higher electricity costs.”
—Fernando Melo, Senior Director of Public Affairs and Federal Policy, Canadian Renewable Energy Association (CanREA)
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About CanREA
The Canadian Renewable Energy Association (CanREA) is the voice for wind energy, solar energy and energy storage solutions that will power Canada’s energy future. We work to create the conditions for a modern energy system through stakeholder advocacy and public engagement. Our diverse members are uniquely positioned to deliver clean, low-cost, reliable, flexible and scalable solutions for Canada’s energy needs. For more information on how Canada can use wind energy, solar energy and energy storage to help achieve its net-zero commitments, consult Powering Canada’s Journey to Net-Zero: CanREA’s 2050 Vision. Follow us on LinkedIn here. Learn more at renewablesassociation.ca.