The Steel Derivative Surtax Order
Effective December 26, 2025, under the Steel Derivative Goods Surtax Order, certain steel derivative goods are subject to a 25% surtax when imported into Canada for commercial purposes.
- The surtax is based on the value for duty (VFD) of the imported goods.
- It is in addition to any other applicable duties and taxes owed.Â
- It is applicable to goods that qualify for preferential tariff treatment under the Canada-United States-Mexico Agreement (CUSMA).
Which steel goods are affected?
A complete list of products by 8-digit Harmonized System (HS) code is available in the Schedule of the Steel Derivative Goods Surtax Order.Â
Are there any exceptions to the surtax?
Yes. The surtax is not applicable in the following cases:
Goods in Transit
- Steel derivative goods that are in transit to Canada on the date on which the surtax takes effect.Â
- Includes goods that were in transit before the surtax comes into force.Â
Please note that importers must be able to provide shipping documentation to the CBSA as proof, if requested.Â
Casual goods
- Imported into Canada other than goods imported for sale or for any commercial, industrial, occupational, institutional or other like use.
Goods classified under a tariff item of Chapter 98 of Canada’s Customs Tariff
- Including goods otherwise classifiable under an HS code that is listed on the Schedule of the Steel Derivative Goods Surtax Order.
Imported under the following scenarios:
- Steel derivative goods that are imported before July 1, 2026 for use in the manufacture of motor vehicles or chassis for motor vehicles or in the manufacture of parts of or accessories for motor vehicles or chassis for motor vehicles.
- Steel derivative goods that are imported before July 1, 2026 for use in aircraft, ground flying trainers or spacecraft or in parts of aircraft, ground flying trainers or spacecraft.
- Utility wind towers, and sections of those towers, that are classified under tariff item 7308.20.00 and are imported for installation in energy projects located west of the Ontario–Manitoba border are not subject to the surtax.
IMPORTANT:
The Government of Canada currently maintains a non-stackable policy for surtaxes on steel. When steel derivate goods imported into Canada are subject to surtaxes from the other Surtax Orders listed below, the 25% surtax under the Steel Derivative Goods Surtax Order would not be applied.
Are there programs to recover surtax costs?
Yes. Importers may use the:
Duties Relief Program
Duty Drawback Program
These apply to surtax paid or owed by Canadian businesses, subject to the Canada-United States-Mexico Agreement (CUSMA) provisions.