How do steel tariffs affect scrap car prices in Canada?

When the US imposes steel tariffs on Canadian exports, American steel mills buy less Canadian scrap metal. This reduces demand at Canadian scrap yards, which then lower the prices they pay for scrap cars. Ontario yards — closest to US import markets — feel the effect fastest. Scrap car values typically fall $30–$80 per vehicle during active tariff periods compared to tariff-free baselines.

What are Section 232 steel tariffs?

Section 232 refers to a provision of the US Trade Expansion Act of 1962 that allows the President to impose tariffs on imports deemed a threat to national security. The US applied 25% Section 232 tariffs on Canadian steel in 2018, removed them in 2019 under the CUSMA trade agreement, then reimposed them in 2025. Canada responded with retaliatory tariffs on US goods, escalating a trade dispute that directly affects Canadian scrap metal markets.

Which Canadian provinces are most affected by steel tariffs?

Ontario is most affected — Hamilton hosts Stelco and ArcelorMittal Dofasco, two of Canada's largest steel mills that depend on Canadian scrap and export significant steel to the US. Alberta is second most affected (Evraz and IPSCO in Regina/Calgary). British Columbia is least affected because BC scrap has Pacific export routes to Japan and South Korea, which are not subject to US tariffs.

Should I scrap my car now or wait for tariffs to end?

For most Canadians, waiting months for a tariff resolution to gain an extra $30–$80 on a scrap car is not worth the insurance and storage cost. If you're already not using the car, scrap it now and take the current price. If you're close to selling a running car and tariff news suggests imminent resolution, a 2–4 week wait might be worth it. Tariff cycles are unpredictable — the 2025 dispute lasted longer than most analysts predicted.

How does the Canadian dollar affect scrap metal prices?

Scrap metal is priced globally in US dollars. When the Canadian dollar weakens against the USD — which often happens during trade disputes — Canadian yards receive more CAD for the same USD-denominated scrap. This partially offsets the lower demand caused by tariffs. In 2025, the CAD fell to around $0.69–$0.71 USD during peak tariff uncertainty, providing some cushion for Canadian yard prices.

Do tariffs affect aluminum and copper scrap prices too?

Yes. The US also imposed 10% tariffs on Canadian aluminum in 2025 under Section 232. This affects aluminum scrap prices (alloy rims, engine blocks, transmission cases). Copper is primarily traded on the London Metal Exchange (LME) and is less directly affected by bilateral US-Canada tariffs, though economic uncertainty from trade disputes can push copper prices down globally.

Where can I check current tariff status between Canada and the US?

The Government of Canada's trade relations page (canada.ca/trade) publishes current tariff actions and retaliatory measures. The Canadian Steel Producers Association (canadiansteel.ca) provides industry-specific updates. For metal price impacts, the Recycling Council of Ontario and the Canadian Association of Recycling Industries (CARI) publish market commentary. Scrap car prices typically lag tariff announcements by 1–3 weeks as yard inventory adjusts.

How much less will I get for my scrap car during an active tariff period?

Typically $30–$80 less on a standard passenger vehicle during active Section 232 tariff periods, compared to tariff-free conditions. The exact impact depends on your province (Ontario hardest hit, BC least affected), vehicle size (heavier vehicles with more steel feel more impact), and how long the tariff has been in effect (yards adjust within 2–4 weeks of a tariff announcement). HMS1 steel scrap — the benchmark for scrap car pricing — historically drops $30–$60 per tonne during peak tariff uncertainty.

Guides›Steel Tariffs Canada — Scrap Car Prices

Steel Tariffs in Canada — How They Affect What Your Scrap Car Is Worth

When the US imposes steel tariffs on Canadian exports, scrap car prices in Canada fall — typically $30–$80 per vehicle. Ontario and Alberta yards feel it hardest because they depend on US mill demand for scrap. British Columbia is the most insulated, with Pacific export routes to Japan and South Korea. This guide explains the full chain from US trade policy to your scrap car payout, province by province.

Quick answer

US Section 232 steel tariffs on Canada — first imposed in 2018, removed in 2019, reimposed in 2025 — directly reduce what Canadian scrap yards pay for cars. The mechanism: US mills buy less Canadian scrap → Canadian yards have weaker demand → they lower the price per tonne of HMS1 → your car pays less. The effect is real but modest for individual sellers: $30–$80 less per vehicle in Ontario, $15–$35 less in BC.

How Steel Tariffs Connect to Your Scrap Car Payout

Understanding why tariffs affect your car price requires following the chain from global trade to your local yard.

Your car is mostly steel

A typical passenger car is 900–1,400 kg. Around 65–70% of that is steel — specifically HMS1 (Heavy Melting Steel #1), the benchmark grade for shredded automotive scrap.

Canadian scrap flows to US steel mills

Canada exports several million tonnes of scrap steel to the US annually. US mini-mills (electric arc furnaces) melt Canadian scrap to produce new steel. Ontario scrap crosses the border daily to mills in Michigan, Ohio, and Pennsylvania.

A tariff makes Canadian scrap more expensive for US buyers

A 25% Section 232 tariff means a US mill importing $300/tonne Canadian scrap now pays $375/tonne effective cost. US mills shift to domestic scrap suppliers, reducing demand for Canadian supply.

Canadian yards have less demand and lower prices

With fewer US buyers, Canadian yards face a buyers' market. To move their scrap inventory, they lower purchase prices. The HMS1 benchmark in Ontario might drop from $420/tonne to $360–$380/tonne during active tariff periods.

Your car pays less

A 1,200 kg car with $0.20/kg effective steel rate pays $240 base. If the steel rate drops to $0.17/kg due to tariff pressure, the base drops to $204 — a $36 difference before all other factors.

The USD/CAD Cushion Effect

Scrap metal is priced globally in US dollars. This creates a partial offset during trade disputes: when tariff uncertainty hits, the Canadian dollar often weakens against the USD. When the CAD falls, Canadian yards receive more Canadian dollars for the same US-dollar-denominated scrap price.

In practice, this cushion is real but incomplete. During the 2025 tariff dispute, the CAD fell from ~$0.74 USD to ~$0.69–$0.71 USD — a depreciation that softened the scrap price drop but did not eliminate it. Ontario HMS1 prices still fell by $30–$50/tonne in CAD terms even after the exchange rate benefit.

Canadian Steel Tariff Timeline

2018

US imposes 25% Section 232 tariffs on Canadian steel and 10% on aluminum under President Trump.

2019

Tariffs removed as part of CUSMA (Canada-US-Mexico Agreement) ratification. Canadian scrap prices recover within 60 days.

2020–2024

Tariff-free period. Canadian HMS1 scrap prices reach cycle highs in 2021–2022 (COVID demand surge, supply chain squeeze).

March 2025

US reimposed 25% Section 232 tariffs on Canadian steel and 10% on aluminum. Canada retaliates with counter-tariffs on US goods worth ~$30 billion.

2025–2026

Ongoing dispute with partial exemptions and negotiation rounds. Prices in Ontario/Alberta suppressed compared to BC and tariff-free 2022 peaks.

Province-by-Province Tariff Impact on Scrap Car Prices

Ontario

Highest exposure

Hamilton mills (Stelco, ArcelorMittal) depend on Canadian scrap and export heavily to US. GTA yard prices follow US demand directly.

Estimated impact: −$50–$80 per car during active tariffs

Alberta

High exposure

Evraz (Regina) and IPSCO (Calgary) are major scrap consumers. Prairie yards have limited export alternatives to US markets.

Estimated impact: −$40–$70 per car

Quebec

Moderate exposure

Quebec mills export steel but also supply domestic construction market. Partially insulated by local demand.

Estimated impact: −$30–$50 per car

Manitoba / Saskatchewan

Moderate–High exposure

Dependent on Evraz Regina for scrap processing. Limited alternative buyers.

Estimated impact: −$35–$60 per car

British Columbia

Lowest exposure

Port of Vancouver and Port of Prince Rupert provide Pacific export routes to Japan and South Korea — not subject to US tariffs.

Estimated impact: −$15–$35 per car

Atlantic Canada (NB, NS, NL, PEI)

Moderate exposure

Port of Halifax enables some export diversity. Smaller market with fewer yards reduces liquidity regardless of tariffs.

Estimated impact: −$25–$50 per car

Other Factors That Move Canadian Scrap Prices

Tariffs are one input among several. Understanding the full picture helps you know when to wait and when to scrap.

Global steel demand (China)

China is the world's largest steel producer and consumer. When Chinese construction activity surges, global scrap demand rises and prices follow — regardless of US-Canada tariff status. China's property sector slowdown in 2023–2024 was a major headwind for global scrap prices.

Canadian construction activity

Domestic infrastructure and housing construction creates demand for Canadian-made steel. Ontario's transit expansion and Alberta's energy sector infrastructure can lift local scrap prices independent of US tariff policy.

Seasonal patterns

Spring and early summer typically bring higher scrap prices as construction season begins and yards process winter inventory backlogs. Late fall and winter often see softer prices as activity slows. This seasonal effect can be $20–$50/tonne and is often larger than the tariff impact for individual sellers.

Fuel and transport costs

Scrap yards pay for fuel to tow cars, operate shredders, and ship processed steel. High diesel prices compress yard margins and reduce what they pay for raw cars. This is separate from steel prices but moves your offer in the same direction.

Should You Wait for Tariffs to End?

Scrap now — makes sense when:

✓ Car is sitting unused and costing insurance
✓ No clear tariff resolution timeline
✓ Car is non-running (value depreciating)
✓ In BC — tariff exposure is minimal
✓ You need the cash or driveway space

Consider waiting when:

✓ Active trade negotiation headlines suggest imminent deal
✓ In Ontario/Alberta with tariff actively in effect
✓ Car still runs (value holds)
✓ Spring arriving (seasonal lift coming)
✓ Can wait 4–8 weeks without cost

Practical note: Tariff cycles are highly unpredictable — the 2025 dispute lasted significantly longer than most trade analysts predicted. If waiting means paying an extra month of insurance ($80–$150) on a car you are not driving, scrapping now is almost always the better financial decision.

Check Current Canadian Scrap Prices

Our metal prices pages are updated weekly from live market data. See current HMS1 steel scrap prices by province to gauge where the market is today relative to historical norms.

ontario prices →alberta prices →british columbia prices →manitoba prices →quebec prices →saskatchewan prices →

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